Understanding Stock Exchanges

Very Easy Equity Markets And Instruments Stock Exchanges

Equities, or stocks, represent ownership in a company and are traded on various platforms. One of the central venues for such trades is known as a stock exchange.

Which of the following statements correctly describes a stock exchange?

A stock exchange is a physical location where investors can meet to trade bonds.

A stock exchange is an organized market where securities such as stocks are bought and sold.

A stock exchange operates only during banking hours.

Hint

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