Stock Exchange

A stock exchange is a corporation or mutual organization that exists to provide facilities for the buying and selling of stocks and securities by stock brokers and traders. Exchanges also provide facilities for the issue and redemption of securities and for the payment of dividends and income.

In order for a given stock or security to be traded on an exchange it must be listed on the exchange. Today electronic networks have to a large degree outstripped physical market places offering the advantages of faster transactions and lower costs. Major U.S. stock exchanges include the American Stock Exchange, the NASDAQ, and the New York Stock Exchange.

The largest of these is the New York Stock Exchange which has the greatest by dollar volume and the second largest number of listed companies. (The NASDAQ has the greatest number of listings.) The global capitalization of the New York Stock Exchange is $21 trillion.

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