Characteristics of a stock exchange, Financial Management

Characteristics of a Stock Exchange

The requirements for a stock exchange to act as a platform for buying and selling securities is dependant upon the trading prerequisites.
Some of the prerequisites are:

  • A marketplace that promotes the buying and selling of securities.
  • The marketplace should be equally accessible to all participants.
  • The marketplace should be reasonably fair and unbiased.
  • The cost of participation in the marketplace represents a reasonably low percentage of the overall cost of the goods traded.
  • There is a free flow of information regarding the rules of the market and the trades that occur on the market.
  • Investors should look for the above prerequisites while taking up trading activity on any stock exchange.
Posted Date: 9/10/2012 6:06:12 AM | Location : United States







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