A stock exchange, (formerly a securities exchange) is a corporation or mutual organization

which provides "trading" facilities for stock brokers and traders, to trade stocks and other
securities. Stock exchange is a highly organized market where securities are purchased and sold.
History of Stock Exchanges
In 11th century France the courtiers de change was concerned with managing and regulating the debts
of agricultural communities on behalf of the banks. As these men also traded in debts, they could be
called the first brokers.
In the middle of the 13th century, Venetian bankers began to trade in government securities
In 1602, the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. It was
the first company to issue stocks and bonds. In 1688, the trading of stocks began on a stock exchange in
London.
On May 17, 1792, twenty-four supply brokers signed the Buttonwood Agreement outside 68 Wall Street
in New York underneath a buttonwood tree. On March 8, 1817, properties got renamed to New York
Stock & Exchange Board
Securities:-
The securities traded on a stock exchange include:
Shares issued by companies.
Debentures.
Bonds
Shares:-
The total authorized capital in the company is divided into small units and each is
individually called Share. You can buy large or small lots to match the amount of money
you want to invest. When the company does well, its shares can rise in value. If the
company hits a bad patch, its share can fall in value. The shares are considered as the main
source to raise companys capital.
Share Holder:-
The people who provide finance to company by purchasing shares are called shareholders
Types of shares:-
1. Preference Shares:
These are shares whose holders have preferential rights in respect of the payment of
dividend and repayment of capital in the event of winding up
2. Ordinary Shares:
These shares are the shares on which dividend is not paid at fixed rate.
3. Deferred Shares:
The share issued to promoters of the company is called deferred or founders shares.
1. Types of operators on stock exchange
The operators who buy and sell securities on stock exchange are of several types. Some of
them are described below
1. Brokers:

A broker is a member of the stock exchange. He buys and sells the securities on the behalf
of the outsiders who are not the members
2. Jobbers:

The jobber is a member of stock exchange but he buys and sells securities on his own
behalf
3. Bulls:

A bull is a speculator who expects a rise in prices. Therefore, he buys securities with a view
to sell them in future at a higher price thereby make profit
4. Bears:

A bear is a speculator expects fall in prices. Therefore, he sells securities for future
delivery. He sells securities, which he does not possess.