rs), term applied to a European stock exchange stock exchange, organized market for the trading of stocks and bonds (see bond; stock). Such markets were originally open to all, but at present only members of the owning association may buy and sell directly...... Click the link for more information. . The first international bourse was established in Antwerp in the 16th cent. The Paris bourse, dating from 1720 but completely reorganized in 1999, consists of the main exchange, equivalent to the New York Stock Exchange, plus the Matif (the derivatives exchange) and the Monep (the equity and index options market). In 1999 the Paris bourse and seven other major European bourses agreed to form a partnership that would create a pan-European stock exchange. That same year, the Paris bourse signed an agreement with the Chicago Mercantile Exchange and the Singapore International Money Exchange to create a "global alliance" covering the European, U.S., and Asian time zones, allowing for trading 24 hours a day.
stock exchange
or stock market or(in continental Europe) BourseOrganized market for the sale and purchase of securities (see security) such as stocks and bonds. Trading is done in various ways: it may occur on a continuous auction basis, it may involve brokers buying from and selling to dealers in certain types of stock, or it may be conducted through specialists in a particular stock. Some stock exchanges, such as the New York Stock Exchange (NYSE), sell seats (the right to trade) to a limited number of members who must meet eligibility requirements. Stocks must likewise meet and maintain certain requirements or risk being delisted. Stock exchanges differ from country to country in eligibility requirements and in the degree to which the government participates in their management. The London Stock Exchange, for example, is an independent institution, free from government regulation. In Europe, members of the exchanges are often appointed by government officials and have semigovernmental status. In the U.S., stock exchanges are not directly run by the government but are regulated by law. Technological developments have greatly influenced the nature of trading. In a traditional full-service brokerage, a customer placed an order with a broker or member of a stock exchange, who in turn passed it on to a specialist on the floor of the exchange, who then concluded the transaction. By the 21st century, increased access to the Internet and the proliferation of electronic communications networks (ECNs) altered the investment world. Through e-trading, the customer enters an order directly on-line, and software automatically matches orders to achieve the best price available without the intervention of specialists or market makers. In effect, the ECN is a stock exchange for off-the-floor trading.
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