The stock exchange is a regulated market on which assets are traded. For example, these assets could be marketable securities or raw materials.
The term “bourse” (“stock exchange” in French) is believed to have originated in the XIVth century, when Belgian merchants would gather and trade in the square in front of an inn owned by the wealthy Van der Beurse family. At the time, this square was known as “Ter Beurse,” so they were literally going “to the bourse.” As the years passed, “bourse” became the standard French term for the stock exchange.
The Paris Stock Exchange was created in 1724. Going back even further, a “merchants’ square” had been established in Paris in 1563. There are nowadays many other stock exchanges across the globe.
Of course, the modern stock exchange is very different from what it was like back then. If we consider publicly traded shares, there are two markets at play:
To buy or sell shares on the stock exchange, investors must place a stock exchange order. There are several types of order—market price, limit price, best price and more—which we will discuss in an upcoming article.
By enabling companies to raise a portion of the capital they require to invest and expand, the stock exchange plays a pivotal role in the economy.
Did you know? Stock exchange transactions were historically made by “open outcry” in the pit, but trading at the Paris Stock Exchange went fully digital in the late 1990s.
Market authorities oversee the smooth running of the stock exchange and ensure that all players fulfill their obligations. In France, this is done by the AMF (Autorité des marchés financiers — the French financial markets authority).
Listed companies (“issuers”) have a number of disclosure obligations:
Article published on October 21, 2021