Amsterdam Stock Exchange is considered as the
oldest stock exchange in the world. It was established in the year 1602 by
Dutch East India company called VerenigdeOost-IndischeCompagnie called ‘VOC’.
It was later rechristended as “Amsterdam Bourse”. The first stock exchange in
India was“The Native Shares and Stock Brokers Association”. It was recognized
by Government of India on Aug 31, 1957 under Securities Contract (Regulation) Act,
1956. It became The Bombay Stock Exchange subsequently.
Stock exchange is an organized market for buying
and selling corporate and other securities. Here, securities are purchased and
sold out as per certain well-defined rules and regulations. It provides a
convenient and secured mechanism or platform for transactions in different
securities. Such securities include shares and debentures issued by public
companies which are duly listed at the stock exchange, and bonds and debentures
issued by government, public corporations and municipal and port trust bodies.
Stock exchanges are indispensable for the smooth
and orderly functioning of corporate sector in a free market economy. A stock
exchange need not be treated as a place for speculation or a gambling den. It
should act as a place for safe and profitable investment, for this, effective
control on the working of stock exchange is necessary. This will avoid misuse
of this platform for excessive speculation, scams and other undesirable and
stock exchange (LSE) is the
most popular stock exchange in the world. While Bombay stock exchange (BSE) is the oldest stock exchange in India.
Similar Stock exchanges exist and operate in other parts of the world. (Tokyo
Stock Exchange, Bankgaco Stock Exchange, Singapore Stock Exchange, Dubai Stock
Exchange, Newyork Stock Exchange)
to Hastings, "Stock exchange or securities market comprises all the places where buyers and
sellers of stocks and bonds or their representatives undertake transactions
involving the sale of securities.”
to Husband and Dockerary, "Stock exchanges are privately organized
markets which are used to facilitate trading in securities."
Indian Securities Contracts (Regulation) Act of 1956, defines
Stock Exchange as,"An
association, organization or body of individuals, whether incorporated or not,
established for the purpose of assisting, regulating and controlling business
in buying, selling and dealing in securities."