A stock exchange, securities exchange or bourse,is a facility where stock brokers and traders can buy and sell securities, such as shares of stock and bonds and other financial instruments. Stock exchanges may also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividends.
Securities traded on a stock exchange include stock issued by listed companies, unit trusts, derivatives, pooled investment products and bonds. Stock exchanges often function as “continuous auction” markets with buyers and sellers consummating transactions via open outcry at a central location such as the floor of the exchange or by using an electronic trading platform.
he share market is where the shares in companies are bought and sold, providing companies options to access capital, and investors opportunities to own a share of the company and enjoy potential gains from the company’s future performance.
The share market offers people the ability to generate a separate income stream apart from their daily jobs, or income streams which are superior to those from traditional savings deposits. But before you even think about buying and selling shares, you must know the fundamentals of the share market and of trading.
First time investors can become confused because of the terminology that is used to describe various market functions. These don’t take long to learn. Incidentally, one common confusion is over the terms ‘stocks’ and ‘shares’. Actually, they both mean the same thing and can be used interchangeably. The Role of Bursa Malaysia
You can only invest in shares through a stock exchange, an organized marketplace where shares are bought and sold under strict rules, regulations and guidelines. The Malaysian stock exchange is called Bursa Malaysia. Bursa Malaysia has over 900 listed companies offering a wide range of investment choices to local and global investors.
In Maishince Academy, we offer various technique, tips and how to start trading in stock exchange marketplace.