WHY DO COMPANIES LIST ON Stockmarkets?

CHAPTER 6
STOCK EXCHANGES

WHY DO COMPANIES LIST ON THEM?

Stock Exchange is an organization or a corporation which helps in trading of stocks to investors and stock brokers. The main aim of listing the companies on stock exchange could be
Raising Capital for the businesses
Mobilizing Savings for further Investment and
Facilitating Companies Growth

NYSE
The biggest and the most prestigious stock exchange is the NYSE ( NEW YORK STOCK EXCHANGE) .NYSE came in existence way back in 1972 , when 24 New York stockbrokers and merchants got together to sign the Buttonwood Agreement.
NYSE is first exchange of its kind and trades in the open outcry system. Each stock is traded by a specialist (who is the employee of NYSE) on a specific location on the trading floor. This specialist actually works as auctioneer between buyer and the seller in particular stock. This type of trading makes NYSE different from other exchanges which are totally dependent on electronic devices.
Today with changing times half of NYSE is also trading on electronic devices, and is come out of the Stone Age.

NASDAQ
The NASDAQ (NATIONAL ASSOCIATION of SECURITIES DEALERS AUTOMATED QUOTATION) is the second type of exchange and the largest electronic screen based trading market of United States of America. The exchange does not have central locations of specialist, neither do they floor trading. The entire trading is done through computers and telecommunications.

AMEX
The third largest exchange of America is the AMEX (AMERICAN STOCK EXCHANGE), which has been taken over by NASD (parent company of NASDAQ) in 1998.

OTHER EXCHANGES
There are many other stock exchanges around the world. Almost all countries have stock exchanges, with Americas stock exchange being undoubtedly be the largest.

List of other exchanges,
LONDON STOCK EXCHANGE
HONG KON GSTOCK EXCHANCE
MUMBAI STOCK EXCHANGE
JOHENSBURG SECURITIES EXCHANGE
And the list can go on…………