Stock exchange

Stock exchange :-

Stock exchange is a market place where people meet to buy and sell second hand stocks and shares. The demand and supply rules are followed to determine the prices. The profitability of the company also effects the price level of shares. The stock exchange is managed by the board of directors consisting of certain members who may be brokers, floor traders, odd lot dealers and specialists. The management look after the affairs of the business. The management is responsible for settlement of disputes among the members. It handles the matters like admission of new members and expulsion of members on account of misconduct. The stock market is necessary for resale facility of shares. When new company is formed the buyers know that they can sell-the shares in case of need. The investors help to set up new company by providing necessary funds at the time of registration. They earn income on shares and they can sell such shares at the stock exchange. In fact it helps the flow of saving into investments and mobility of capital for more profitable uses. Perhaps the first ever stock exchange was set up in 1802 in England under the name of London stock exchange. The new York stock exchange was established in 1865 in America for the first time. In 1948 the Karachi stock exchange was formed. Since that time it is working successfully. The Lahore stock exchange was established in 1970. A third stock exchange has been set up at Islamabad in 1992.there is need of many such stock exchanges in all big cities in order to meet the requirements

Of trade and industry. In fact stock exchange provides mobility to capital stability to market, and place for investment.