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.

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