Thursday 23 February 2012

What is Stock Market?


Stock markets is the place where stocks and related securities on all exchange are traded.
Stock market consists of the trading of related securities and stocks on all exchanges including over-the-counter market.


Stock market functions 
  1. a central market place to raise equity funds by governments and corporations; 
  2. a place for selling and buying securities by company and government
  3. a place to raise money by issuing new securities to individuals or organisations to invest their saving or surplus funds
Stock market also offers investors liquidity.  This is called the ability to convert investments into cash at a short notice to encourage the flow of savings for productive ventures.

The stock market in Malaysia is operated by Bursa Malaysia Securities Berhad through their Stock Exchange.


For Further Reading,
Bursa Malaysia Securities Berhad, Finance, Malaysia, Module 6, Stock Market Security Law, Study Guides

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