Stock Exchanges around the world service the needs of Investors, giving them direct access to participate in the Free Market System. Through Facilitating the buying and Selling of Stocks, Bonds, and other Securities, These exchanges are vitally important for a Nations Economic Growth, Vitality, and future prosperity. On these exchanges, companies can raise capital from investors by issuing shares of stock. This capital can be used for expansion, capital investments (buying a building or factory, for example), or even to pay down debt so their balance sheets appear more attractive to more potential investors. Stock Exchanges can be Electronic like the Nasdaq in the United States, or can be a hybrid like the New York Stock Exchange (which I'll refer to as the NYSE) which has an actual Trading Floor but also processes most transactions electronically. Companies Listing Shares of must meet the requirements of the exchange they are listing on. The rules can vary from those in New York to those in Paris and beyond.
There are many Exchange located throughout the globe. From London to Shanghai and Tokyo to Australia, Global Market Exchanges, provide the opportunity for investors, brokers, traders, investment firms, and speculators to buy or sell securities on the open market. Some of the buildings that house these facilities are breath taking! The Tokyo Stock Exchange in Japan, looks high tech and futuristic. The London building for example, has trading desks on the exchange floor shaped like Large bright hexagons! A huge honey comb always comes to mind while envisioning the the capital that flows through the exchange on any given trading day, as the honey produced by the workers. The outside of this building is also also impressive with very modern, and unique architectural design. The Shanghai Exchange is no less impressive, and also serves as a great conduit for investors to become active participants in the market. As the middle class in china grows, and more and more people become educated, the added interest in the stock market, means these major Exchanges which I see as having become Institutions and symbols of civilization itself, will play a role in even more people lives.
Stock Exchange Developments
There has been a sense of consolidation happening recently with several Global Exchanges. The most recent example is the ongoing talks between the NYSE and the German Exchange operator, Deutsche Börse. The Nasdaq made rival bid to buy the NYSE but so far, the German operator looks on track to win. With the NYSE and Deutsche Börse combined, business operations will be streamlined, and a powerful exchange, may be enough incentive for other world Operators to begin thinking about their plans for consolidating, in order to compete with what has become, larger competitors. Talks between the London and Toronto Exchange operators made news, but no merger or agreement was announced. I personally believe the Nasdaq will look to consolidate its operations through a merge with another Exchange Operator, if the NYSE deal goes through. Consolidation appears to be business move as much as a move for survival. More merger announcements most likely will be on the way. Read the Investing for Beginners Blog Posts on the ongoing discussions between the Stock Exchange Mergers being considered in the market. NYSE and Nasdaq developments
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