Stock exchange

The stock exchange is a trading place where people come together to trade securities and other financial products – which has been going on since the 16th century. The task of the stock exchange is to bring sellers and buyers together. For trading to take place on the stock exchange, buyers and sellers must agree on a price at which the sellers are willing to sell (supply), and the buyers are willing to buy (demand). This no longer happens from person to person as it did in the past, but it is an automated process by computer systems.

Trading on the stock exchange has the advantage that all transactions are regulated and standardized. In addition to shares, other financial products such as bonds, derivatives, ETFs or CFDs, futures, options, or certificates are traded. The most important stock exchange in the world is the New York Stock Exchange (NYSE); in Germany, it is the Frankfurt Stock Exchange.