Introduction of Stock
Normally,
the stock of any organization constitutes the equity stake of its owners. It
represents the residual assets of the company that would be due to stockholders
after discharge of all senior claims such as secured and unsecured debt.
Stockholder’s equity can not be withdrawn from the company in a way that is
intended to be unfavorable to the company’s creditors.
Stock Exchange
A stock exchange is a form of
exchange which provides services for stock brokers and traders to by or sells
stocks, bonds on other securities. Stock Exchange also provides facilities for
issue and redemption of securities and other financial instruments, and capital
events including the payment of income and dividends.


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