🏛️ What Is a Stock Exchange?
A stock exchange is a regulated marketplace where investors can buy and sell stocks, ETFs, bonds, and other financial securities.
Think of it like a supermarket — but instead of groceries, it sells pieces of companies.
📍 Major Stock Exchanges (Worldwide)
| Exchange | Location | Key Index | Notes |
|---|---|---|---|
| NYSE (New York Stock Exchange) | USA | Dow Jones, S&P 500 | Largest in the world by market cap |
| NASDAQ | USA | NASDAQ-100 | Tech-heavy (Apple, Amazon, Tesla) |
| LSE (London Stock Exchange) | UK | FTSE 100 | One of the oldest, international companies |
| Tokyo Stock Exchange (TSE) | Japan | Nikkei 225 | Largest in Asia |
| Shanghai Stock Exchange (SSE) | China | SSE Composite | Government-influenced |
| Euronext | EU | Euronext 100 | Covers multiple European countries |
| Bombay Stock Exchange (BSE) | India | BSE Sensex | Oldest in Asia |
| National Stock Exchange (NSE) | India | NIFTY 50 | Most popular in India |
| Toronto Stock Exchange (TSX) | Canada | S&P/TSX Composite | Resource-heavy (mining, oil) |
🧩 How a Stock Exchange Works
- Companies list shares via an IPO (Initial Public Offering)
- Investors place orders through brokers
- Orders are matched electronically using an order book
- Price is determined by supply & demand
📈 Market Participants
- Retail investors (individuals like you and me)
- Institutional investors (banks, hedge funds)
- Market makers (provide liquidity)
- Stockbrokers (middlemen between you and the exchange)
🔄 Trading Hours (Examples)
| Exchange | Open (local time) | Close |
|---|---|---|
| NYSE/NASDAQ | 9:30 AM | 4:00 PM (EST) |
| LSE | 8:00 AM | 4:30 PM (GMT) |
| NSE/BSE | 9:15 AM | 3:30 PM (IST) |
| TSE | 9:00 AM | 3:00 PM (JST) |
Many also have pre-market and after-hours trading sessions.
🌐 Can You Trade International Stocks?
Yes, through:
- Global brokerage accounts (e.g., Interactive Brokers)
- ADRs (American Depositary Receipts) — foreign stocks listed on US exchanges
- ETFs — funds that hold international stocks
🧠 Quick Terms to Know
| Term | Meaning |
|---|---|
| IPO | Company’s first time offering shares to the public |
| Ticker Symbol | Short code for a stock (e.g., AAPL for Apple) |
| Volume | Number of shares traded |
| Market Cap | Value of all shares (price × total shares) |
| Index | A group of stocks used to track performance (e.g., S&P 500) |