ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments.

Detailed explanation-2: -The stock market is a network of investors that interact with each other to buy and sell shares in publicly traded companies. The stock market isn’t a physical place, but there are physical venues where companies list their shares for investors to buy or sell-known as ‘stock exchanges’.

Detailed explanation-3: -Stock markets are venues where buyers and sellers meet to exchange equity shares of public corporations. Stock markets are components of a free-market economy because they enable democratized access to investor trading and exchange of capital. Stock markets create efficient price discovery and efficient dealing.