The term stock exchange refers to an organized market where financial instruments are traded by buying and selling. These exchanges help companies obtain more funds by selling financial assets such as stocks, bonds, debentures, etc. The other side of the picture is that savers can earn income from their money (known as a yield) by buying and selling the financial products issued by companies and sold on a stock exchange.
A stock exchange represents a meeting place between companies and savers, and it offers the possibility to turn these financial products into immediate cash.
What is a stock exchange?