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.
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