The Stock Exchange made easy
Shouted offers, negotiated prices, gestures used to communicate intentions amid the chaos.
Until the 1990s, a glance inside its building was enough to understand: the stock exchange is a market. A financial market, where the products traded are shares, bonds, and other financial instruments.
Today, trading takes place electronically, rather than through loud voices in a space that could have been named by Dante himself 'the shouting pit' but the essence remains unchanged: someone wants to buy, someone else wants to sell, and when both sides agree on a price, the deal is done. Just like in any other market.
However, the stock exchange is strictly regulated and closely monitored to ensure no one plays unfairly, so we can invest our savings with peace of mind.
To learn more, read the new article 'What is the stock exchange?' in our series 'In Plain Words'.