Global Stock Market: Learn About The Different Markets In The World
Just like a market, as economics defines it, is a phenomenon witnessing the buyers and sellers corroborating their demands, similarly, a stock exchange is nothing but a financial market where buyers and sellers of stocks meet to fulfil their respective needs. Various companies of varying types can list their securities and issue their IPOs on their country's respective stock exchange, after issuing their IPOs in accordance with the country's jurisdiction.
SEBI and Indian stock market
In India, SEBI: Securities and Exchange Board of India manages the legal issues in the stock market and also supervises the functioning of the two major exchange boards of our country: Bombay Stock Exchange and National Stock Exchange. New companies, wanting to be listed on NSE / BSE have to conform to the rules listed by SEBI. BSE is the oldest stock exchange in Asia.Both stock exchanges in India are order driven; both sellers and buyers place their orders anonymously thus ensuring transparency in the entire system. This is where a stock broker comes into the picture. All orders need to be placed through stock brokers only. Some also provide an online retail platform for the purpose.
American stock market
The American stock market houses two of the most powerful stock exchange in the world: NASDAQ and New York Stock Exchange (NYSE). The most basic difference between these two is that NYSE is traded in a physical marketplace. NASDAQ trading takes place through a telecommunications network.The American stock market is the only exchange where you need to attach specific meanings to terms: specialist and market maker. Since in NASDAQ, telecommunications network is required for transactions to take place, a market maker is required to create a market so as to initiate successful deals between the buyers and sellers. When it comes to NYSE, a specialist is the required the watchdog. The transactions between the buyers and sellers take place through auctions which are facilitated by the specialist.
London stock exchange (LSE)
LSE's origin dates back to the 17th century. It is known for housing the maximum number of International companies from over 50 countries around the world. It is the primary and largest stock exchange in Europe. LSE uses various trading systems. For the most actively traded stocks, LSE uses SETS, an electronic order book, which is also considered the most liquid one in Europe. Then there is SETSqx, Stock Exchange Electronic Trading Service quotes and crosses, which is for securities with lesser liquidity as compared to those listed on SETS. SEAQ is for securities not traded in SETS and SETSqx.
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