Explain stock exchange
A stock exchange is a platform where shares of publicly traded companies are bought and sold by investors. Stock exchanges create an organized marketplace, facilitating the trading of securities, including stocks or shares of ownership in a company, bonds, and other financial instruments.
Investors use stock exchanges to buy and sell shares in companies, which fluctuate in value based on a variety of factors, including company performance, industry trends, and macroeconomic conditions.
Stock exchanges also provide a way for companies to raise capital by issuing new shares of stock to investors. In this way, stock exchanges play a critical role in the functioning of capital markets and the global economy.