how stock exchange works..
A stock exchange is a centralized marketplace where securities, such as stocks, bonds, and other financial instruments, are bought and sold. These exchanges play a crucial role in the global financial system by providing a platform for companies to raise capital and for investors to buy and sell ownership stakes in those companies. Here's how a stock exchange works: Listing: Companies that want to go public and offer their shares to the public must apply for listing on a stock exchange. Listing requirements vary from one exchange to another but generally include financial disclosure, minimum market capitalization, and adherence to regulatory standards. Initial Public Offering (IPO): When a company meets the listing requirements, it can conduct an initial public offering (IPO) to sell its shares to the public for the first time. This involves issuing a certain number of shares and setting an initial price for them. Trading Participants: Stock exchanges have members, often referred t...