Q.What is meant by Stock Exchange ?

A stock exchange is an organised marketplace where existing securities are traded, providing liquidity and a continuous market; it is defined under the Securities Contracts (Regulation) Act, 1956.

A stock exchange is central to the secondary market and is studied in the Tamil Nadu HSC Class-12 Commerce syllabus as the place where investors can buy and sell securities that have already been issued.

Meaning: It is a specific, organised and regulated marketplace where second-hand or existing securities — shares, debentures, bonds and government securities — are traded through authorised members (brokers).

Statutory definition: Under the Securities Contracts (Regulation) Act, 1956, a stock exchange means any body of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling and dealing in securities.

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