SECURITIES EXCHANGES
Keywords:
stock exchange, securities exchange, tradeAbstract
It is not easy to specify the moment when the first stock exchange started operating. It has been
speculated that the first scholarships were apparently of Italian origin. Around 1400, public debt was traded in
Venice and a list was drawn up. Subsequently, the Genoese and Milanese gave a big boost to the exchange fairs.
Meanwhile, as early as 1531, in Antwerp (Belgium), the first major stock exchange was born. But the year 1785
had to wait for the Amsterdam Stock Exchange (Netherlands) to be officially organized.
Today, we have arrived at a very large number of scholarships, where among the most important we can mention
the National Scholarships, such as that of New York (NYSE), that of Tokyo (TSE), the London Stock Exchange
(LSE) etc. These stock exchanges are called national due to the large number of listed companies, the
geographical location of these companies, the different clientele of buyers and sellers that use the market, etc.
It can be said that information technology has a direct impact on increasing the activity of the Exchange, the range
of services, increasing efficiency and reducing the cost of service as a result of increasing the speed of information
processing.
Before we briefly show how the secondary market works, let’s get acquainted with a few terms.
A broker is an authorized market participant who trades on his behalf.
A dealer is an authorized market participant who trades on behalf of himself and others.
Developments of the last two decades have broken down the traditional dividing wall between the broker and the
dealer. Today the broker can hold a portfolio just as the dealer can perform a brokerage function. The most
appropriate term for both participants could be stock exchange intermediaries.
On the Stock Exchange, securities are sold and bought at a certain price called the exchange rate.
In the call market, trading for individual shares is carried out at a certain time. The aim is to gather all the
demands and offers and try to reach a single price at which all transactions will be executed and that possibly
regulate the market at this time. So the goal is to set a price at which the quantity demanded is as close as possible
to the quantity offered.
This type of trading was used in the early stages of stock market development, when there were few listed shares
and a small number of investors - trading and is characteristic of small markets with low liquidity.
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