Following are the main features and characteristics of a stock exchange −

 

Stock exchange is the market place where trading of listed securities can be done.

 

Trading of un-listed securities is not allowed.

 

There are certain rules and regulations that need to be followed while trading.

 

Stock exchange is an association of persons, whether incorporated or not.

 

Anyone can buy or sell securities whether he is investor or speculator.

 

For doing business transaction i.e. sale & purchase of securities, membership is compulsory. Non-members are not allowed to do business transactions. Membership can be applied only when there is a vacancy in any stock exchange and after paying the prescribed fees of respective stock exchange, membership can be acquired. Members of stock exchange are called as brokers and commission charged by them for the transaction done is called as brokerage.

 

Only a broker (member) can buy or sell securities, therefore, investors or speculators can do transaction through members only.