What is a stock exchange?

A stock exchange, such as the Jamaica Stock Exchange (JSE) or the New York Stock Exchange (NYSE) is a place/market where persons connect to buy or sell financial instruments such as stocks, commodities, and bonds. Stocks in a company can only be bought or sold on the exchange after the company issues an IPO. The exchange monitors the number of orders for ‘buys’ and ‘sells’ and the level of supply and demand in order to determine a stock price. The exchange does not own the stocks but facilitates the trading.

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