A Stock Exchange

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  A stock exchange , (formerly a securities exchange) is a corporation or mutual organization which provides trading facilities for  stock brokers and traders, to trade stocks and other securities. Stock exchange is a highly organized market where securities are purchased and sold. History of Stock Exchanges   In 11th century France the courtiers de change was concerned with managing and regulating the debts of agricultural communities on behalf of the banks. As these men also traded in debts, they could be called the first brokers. In the middle of the 13th century, Venetian bankers began to trade in government securities In 1602, the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. It was the first company to issue stocks and bonds. In 1688, the trading of stocks began on a stock exchange in London. On May 17, 1792, twenty-four supply brokers signed the Buttonwood Agreement outside 68 Wall Street in New York underneath a buttonwood tree. On March 8, 1817, properties got renamed to New York Stock & Exchange Board Securities:- The securities traded on a stock exchange include: Shares issued by companies. Debentures. Bonds  Shares:- The total authorized capital in the company is divided into small units and each is individually called “Share”. You can buy large or small lots to match the amount of money you want to invest. When the company does well, its shares can rise in value. If the company hits a bad patch, its share can fall in value. The shares are considered as the main source to raise company’s capital.   Share Holder:- The people who provide finance to company by purchasing shares are called shareholders  Types of shares:- 1.   Preference Shares: These are shares whose holders have preferential rights in respect of the payment of dividend and repayment of capital in the event of winding up 2.   Ordinary Shares: These shares are the shares on which dividend is not paid at fixed rate. 3.   Deferred Shares: The share issued to promoters of the company is called deferred or founders shares. 1.   Types of operators on stock exchange The operators who buy and sell securities on stock exchange are of several types. Some of them are described below 1.   Brokers: A broker is a member of the stock exchange. He buys and sells the securities on the behalf of the outsiders who are not the members 2.   Jobbers: The jobber is a member of stock exchange but he buys and sells securities on his own  behalf 3.   Bulls: A bull is a speculator who expects a rise in prices. Therefore, he buys securities with a view to sell them in future at a higher price thereby make profit 4.   Bears:   A bear is a speculator expects fall in prices. Therefore, he sells securities for future delivery. He sells securities, which he does not possess.   
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