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The market place where existing shares are bought and sold through electronic medium is known as

Question

The market place where existing shares are bought and sold through electronic medium is known as

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Solution

The marketplace where existing shares are bought and sold through an electronic medium is known as a stock exchange. In a stock exchange, buyers and sellers engage in trading securities, such as stocks and bonds. These transactions occur through a centralized system that facilitates price discovery and liquidity for market participants.

Prominent examples of stock exchanges include the New York Stock Exchange (NYSE) and the NASDAQ. The electronic components of these exchanges allow for real-time trading, which enhances market efficiency and accessibility for investors. The stock exchange plays a crucial role in the financial system, as it enables capital to flow to companies while providing investors opportunities to grow their wealth.

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