Write the difference between stock market and stock exchange.

The major differences between stock market and stock exchange are as follows −

Stock market

  • Stock exchange will take place through different parkways.

  • Without stock market, trades would have no motivation to exist.

  • OTC, ECN, Stock exchange are types.

  • Doesn’t work as cleaning house.

  • Common for all form of stock trading.

  • Conducts trading activities.

Stock exchange

  • Organisations have precise stream of stock purchasing and offerings.

  • Without stock exchange, organisation have no formal system to rundown offers.

  • NSE, BSE, DOW JONES, NYSE are types.

  • Works as clearing house.

  • Made up by an organization to promote stock trading.

  • Operate under a profit motive.

Updated on: 24-Jul-2020


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