Talk:Stock exchange

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[edit] Rename

Some of the exchanges listed here are not stock exchanges. The CBOT, for example, is a futures exchange. Rather than split the list among several pages, I'd suggest just renaming the page. Trading exchanges or something like that.--AMT

Should this be renamed U.S. Stock Markets? Where is the international info? Rmhermen 23:01 22 Jun 2003 (UTC)

No, the first part is general (please add more). - Patrick 23:43 22 Jun 2003 (UTC)

Would commodity exchanges be a better general name? I have already created Stock Market to redirect here since it is a more commonly used be less correct name. --- Jagged

How about Financial markets? -- "Financial markets" ordinarily refers to markets in specifically financial instruments, like treasury bonds. Commodity exchanges only deal in commodities--steel, corn, or whatever. Two problems: I don't know of a term for all kinds of trading, except "trading"; and the exchange is actually different from the market--the exchange is a specific organization to facilitate trading, the market is the overall effect of all the trades. Bottom line--I don't know what title would work.

Maybe call it "____ Trading" or "____ Markets" and add a paragraph at the top on markets or trading in general? Anyone searching on the phrase "stock exchange" would get here anyway.--AMT

The stock market is not the same as a stock exchange. A stock exchange is - well, read the article. The stock market is the market for stocks. When people speak of the stock market, they are refering to the activities associated with investing in stocks. If someone wants to learn about putting money in the stock market, a description of stock exchanges won't be a much help. So everyone is encouraged to change the Stock Market and Stock markets pages so they do not redirect here, but instead discuss the activities associated with investing in stocks.

[edit] Requirements

net income of 2.5 million to be listed? I think this must mean revenues not income.

[edit] Market Exchange

The stock market is the EXACT same thing as a stock exchange. Look it up. These articles are bogus. They are misleading this way. They need to be combined.

Think about this. What are the differences between a market and an exchange? There are no differences, only one similarity: they both trade stuff, stocks in this case. They're synonymous. Please correct this and keep it correct.

For one quick referance, look at this article on HowStuffWorks.com.

  • Most companies are not listed on a stock exchange, but there shares may be traded in the private market. - Jerryseinfeld 20:07, 21 Nov 2004 (UTC)

A stock exchange is just one part of (and perhaps the major part of) a stock market. When I deal "off-exchange" that is still part of the stock market - but it is not a deal executed on the stock exchange. Paul Beardsell 20:36, 26 Nov 2004 (UTC)

The Stock Market page doesn't reflect that difference AT ALL. --flangazor

I agree on difference. "Stock exchange" often refers to organized, centralized stock markets. Not all stocks are listed in such exchanges, and the can nonetheless be bought and sold (because there is a... market). On the other hand, the vocabulary of financial markets is far from behind stabilized and some terms are often ambiguous. Typewritten 22:52, 29 July 2006 (UTC)

[edit] "Organization of brokers"?

"A stock exchange is an organization of brokers and investment bankers"? An "organization of brokers"? Security exchanges don't have to be mutual organizations. There are a lot of security exchanges that are not broker membership-owned, but function like regular profitable companies, especially in Europe and Asia. The Chicago Mercantile Exchange became a shareholder-owned corporation in 2000 through a public offering. The Chicago Board of Trade is seeking approval from the SEC to do the same thing.

What may be added is a stock exchange article about the role of the exchange "members" in a for-profit exchange.

[1]: "The road to this initial public offering began in June 2000, when Exchange members voted overwhelmingly to transform the then not-for-profit, membership-owned organization into a for-profit, shareholder-owned corporation. On Nov. 13, 2000, CME became the first U.S. financial exchange to demutualize into a shareholder-owned corporation."

[2]: "The CBOT presently is a self-governing, self-regulated Delaware not-for-profit, non-stock corporation that serves individuals and member firms." However, "the Board of Trade of the City of Chicago, Inc. (CBOT) has filed a Registration Statement on Form S-4, including a preliminary proxy statement and prospectus, regarding the restructuring transactions with the SEC".

Jerryseinfeld 23:31, 23 Nov 2004 (UTC)

Use a dictionary. An "organisation" is not necessarily a "mutual organisation". An organisation can be anything you like. Paul Beardsell 20:40, 26 Nov 2004 (UTC)

But an "organization of brokers"? It doesn't sound right, does it? Can't a stock exchange be a broker itself, or a transaction services corporation? - Jerryseinfeld 21:13, 26 Nov 2004 (UTC)
What is wrong here is the understanding of the term "organisation". It simply has its dictionary definition. And by definition a firm, company, club, association or even a transaction services corporation is an "organisation". Paul Beardsell 21:29, 26 Nov 2004 (UTC)
It certainly is an organization, but it's not an organization of brokers. - Jerryseinfeld 20:27, 10 Dec 2004 (UTC)
Oh yes it is. Paul Beardsell 06:40, 11 Dec 2004 (UTC)
So where does the London stock exchange and the Tokyo stock exchange say that they are an organization of brokers? The TSE "Organization Structure" includes an audit commitee, auditors, president & CEO, general administration, the listing division, self-regulation division, cash market division, derivatives market division, clearing & settlement divison, and so on. But no organization of brokers. - Jerryseinfeld 19:16, 18 Dec 2004 (UTC)

A golf club is an organisation of golfers. But the web site will go on about the chairman, the restaurant, the green fees, the special rules, and the club's owners. But, nevertheless, it is an organisation of golfers. Paul Beardsell 20:51, 18 Dec 2004 (UTC)

    • So why don't you go to corporation and point out that it's an organization of workers? Pulte Homes is not an organization of builders, since all employees doesn't build houses. Since not all (and not even most) employees of a stock exchange are brokers why is it an organization of brokers? Isn't it more correct to call it an organization of workers? - Jerryseinfeld 21:24, 18 Dec 2004 (UTC)

Your counterexample is not persuasive. That X is an organisation of Ys does not prevent X from also being something else. You and I know that an organisation of workers is not what a corporation is primarily. No, that would be a trade union. But a trade union can have management, admin staff and even owners, nowadays. Nevertheless, a trade union is an organsiation of workers, primarily. A SE is primarily an organisation of brokers - a (nowadays virtual) place that brokers go to transact their business. A place that you and I cannot go because we are not brokers. What makes a stock broker a stock broker, legally? Membership of the exchange. A stock exchange is an organisation of stock brokers. Now, I am not saying it isn't other things too. But this discussion started with you disputing the statement that a "stock exchange is an organisation of stock brokers". Paul Beardsell 21:58, 18 Dec 2004 (UTC)

"Your counterexample is not persuasive", where did you go, to special grammar school? The exchange members are customers of the exchange. How do you think they make money? There should be a separate headline for membership. - Jerryseinfeld 22:59, 18 Dec 2004 (UTC)


The stock brokers pay membership fees and levys for the services provided by the stock exchange. This is just like the members of a golf club. Being a customer does not preclude one from being a member or even an owner. Paul Beardsell 23:50, 18 Dec 2004 (UTC)

I give up. - Jerryseinfeld 00:16, 19 Dec 2004 (UTC)

Good grammar is, of course, a useful skill to have when writing encyclopaedia articles. Thank you. Paul Beardsell 23:50, 18 Dec 2004 (UTC)

[edit] "Organization of investment bankers"?

So what does that imply? Paul Beardsell 20:53, 18 Dec 2004 (UTC)

Well, I despair. X is not Y because of unconnected fact Z? I ask for clarification and you won't say. But, trying my best: I think your argument does not make sense: Just because investment bankers do P does not mean they can't also do Q. But, having said that, when investment bankers are at the SE they are there in their capacity as members of the exchange. And a member of a stock exchange is a ??? Paul Beardsell 22:05, 18 Dec 2004 (UTC)

You are really in pain now aren't you? - Jerryseinfeld 23:01, 18 Dec 2004 (UTC)

[edit] Language

  • "But trade is less and less". "Less and less"? What? - Jerryseinfeld 21:49, 18 Dec 2004 (UTC)
  • "In Europe, stock exchanges are often called bourses." Really? What language is that? "European"? Come on now. - Jerryseinfeld 21:53, 18 Dec 2004 (UTC)
  • "Offer and demand in stockmarkets is driven by various factors that affect the value of stocks". That's a bad sentence. First of all it's not "offer and demand", it's supply and demand. - Jerryseinfeld 21:56, 18 Dec 2004 (UTC)

[edit] Box

The table box at the bottom doesn't look or fit well. Just take the lists and put them under "see also". - Jerryseinfeld 22:00, 18 Dec 2004 (UTC)

[edit] Introduction

We'll let the folks decide, do you want my good introduction: "A stock exchange is a corporation or mutual organization that provide the facilities for trade of company stocks and other financial instruments in the secondary market." Or the other bad introduction: "A stock exchange is an organisation of which the members are stock brokers. A stock exchange provides facilities for the trading of securities and other financial instruments." You be the judge. - Jerryseinfeld 22:54, 18 Dec 2004 (UTC)

I am not interested in your version or my version. I am interested in a good article. In "my" re-write of the introduction I have kept material contributed by others, you included, which is correct and interesting. There is still lots of room for improvement - a little re-ordering would also be helpful. The article is not finished, there is work to do. Please continue to contribute. Edit boldly. Paul Beardsell 23:32, 18 Dec 2004 (UTC)

I have fixed it better than both of you.--Zxcvbnm 23:52, 23 Jun 2005 (UTC)

[edit] Cleaning up all the versions of exchanges

currently, there are several entries on exchanges: Stock exchange/Derivatives exchange/Securities exchange/Commodity exchange/Currency exchange/Futures exchange.

There are only two types of exchange:

  • Stock exchange, where securities (bonds, stocks, certain unit trusts and warrants) are listed and traded
examples: NYSE, NASDAQ, LSE, Euronext, Deutsche Börse, Mumbai Stock Exchange, etc.
  • Futures exchange, where futures contracts and option contracts are traded.
examples: CBOT, CME, Euronext.liffe, Eurex, Simex, TIFFE.

I suggest to have just these two entries, and have the others redirect to these. For instance, the only exchange traded derivatives, trade on Futures exchanges.

As most of these entries are rather short (and poorly written) anyway (hadn't had any discussions like the above yet), so it's easy to merge them all. -- DocendoDiscimus 14:21, 14 September 2005 (UTC)


I agree that merging some of these terms is appropriate, though care must be taken here. Just some points I would like to make:

  • Why have you chosen Futures exchange to be the main article on derivatives? Technically, isn't Derivatives exchange more accurate? Whatever one is chosen, one of these should redirect to the other.
  • Commodity Exchange already redirects to Commodity Markets. This may be fine as it is.
  • I suggest Securities exchange should be merged to the exisiting article Financial market.
  • Keeping the article stock exchange is fine.
  • Currency exchange is already redirecting to exchange rate. I could also refer to a currency changing kiosk (e.g. at an airport.) Clearly, this is an ambiguous term. I would suggest a providing disambiguation page for this one (i.e. Currency exchange (disambiguation)).

(Thobius 18:12, 14 September 2005 (UTC))

  • I've suggested Futures exchange, as this is the traditional term. You are right, derivatives exchange would seem more accurate, as it's not just futures that are traded, but also options, options on futures, futures on options.. A few examples. LIFFE started life (sorry) as the London International Financial Futures Exchange, and later changed its name to London International Financial Futures and Options Exchange. Same story for the Tokyo based exchange TIFFE. The CBOT calls itself a futures and options on futures exchange [[3]]. I've never heard an exchange call itself Derivative Exchange, please let me know if you've heard of one. Considering there are many more OTC derivatives, I guess they want to avoid confusion. I think it's best to use what is actually used by the exchanges than make up something new in Wiki.
  • The link from Commodity Exchange to Commodity Markets seemed to make sense, until I compared that article (where exchanges are hardly mentioned), with the futures exchange entry. There is more on commodity exchanges there than in the commodity markets bit.
  • An exchange is not a market (see discussion above). As exchange traded securities are stocks, bonds or warrants, and these are traded on Stock Exchanges, I think it's better to redirect to Stock Exchange. The information that is there now (which is strictly speaking wrong, as it not only speaks on securities but also futures exchanges), should go to Financial Markets.
  • Currency exchange - Agreed. No currency is traded on exchanges, so we should just keep the current link.

DocendoDiscimus 18:54, 14 September 2005 (UTC)

My goodness, things have got messy.

  • Futures exchange vs Derivatives exchange - point taken, the article should be headed Futures exchange, with all its derivative (sorry) terms redirecting to it.
  • Commodity Exchange should redirect to Futures exchange then
  • Securities exchange - agreed, it's more appropriate to redirect to Stock exchange in this case, since market is an ambiguous term.

(Thobius 20:23, 14 September 2005 (UTC))

[edit] Payment facilities

The first paragraph now states: Stock exchanges also provide facilities for the issue and redemption of securities, as well as other financial instruments and capital events including the payment of income and dividends. Is this true? I know that for bonds this is all done by the Paying Agent, which does so on behalf of the issuer. Bonds are held in DTC, Fedwire, Euroclear, Clearstream etc.- so even if bonds are listed (which most are), the exchange is not involved. Can someone with expertise in this field on the equity side please clarify. Thanks. DocendoDiscimus 07:47, 15 September 2005 (UTC)

[edit] Stock market hours?

I've heard that there are only certain hours per day that stock exchanges are open. Is this true of all stock exchanges? Why is it the case? Are the hours set by the stock exchange or by law? I've also heard something about "after-hours trading", but I couldn't find anything about it on Wikipedia. -- Creidieki 04:39, 9 October 2005 (UTC)

No. The NYSE opens officially at 9am, and closes at 4pm. The Nasdaq, though, is a computer exchange. Thet are open 24/7. Just for help. And after hours trading is trading after the markets closing time. I've done it, and it's an easy way to get nice deals on stocks. <<unsigned>>

[edit] Direction

In my opinion more emphasis should be made on how exchanges work rather than the economic significance of the stock exchange. └ VodkaJazz / talk ┐

[edit] Italics?

Why are some sentences and parts of sentences in italics? --Awiseman 18:19, 21 September 2006 (UTC)

[edit] Redistribution of wealth

No intention to delve into a matter of economic ideology, but the central claim in this item is flatly without factual merit. A great number of Americans *do* hold a relatively small amount of money in the stock market in the form of retirement accounts. And they *do* have an opportunity to enjoy the growth of companies through share price and (to a much lesser degree) dividends. But the stock market has almost nothing to do with the redistribution of wealth.

I'd cite here a report from the Center for Budget Priorities. I make no claims for their partiality except to say that the claims I'm reproducing from their report are purely issues of sober statistics:

"Over half — 54 percent — of all capital gains and dividend income flows to the 0.2 percent of households with annual incomes over $1 million. More than three-quarters — 78 percent — of this income goes to those households with income over $200,000, which account for about 3 percent of all households.

In contrast, only 11 percent of capital gains and dividend income goes to the 86 percent of households with incomes of less than $100,000. Only 4 percent of this income flows to the 64 percent of households that have income of less than $50,000."


There's plenty more where that came from here: http://www.cbpp.org/1-30-06tax2.htm

I (again) acknowledge that Americans do have a stake in the stock markets in the form of tax-protected retirement accounts. But I should think that the information above is sufficient to suggest that stock exchanges do not function to redistribute wealth. It is neither their purpose nor their result.

I would recommend cutting these claims--unless their author is able to insert the citation that's currently missing.

I would not be opposed to removing the subcategory entirely from the article. --Antelan talk 18:50, 20 March 2007 (UTC)

[edit] Firefox

The page has tons of random edit links in the middle of the page for firefox users

they are under "their speedy execution of large block trades, while specialist system proponents cite the role of specialists in"Iliketofrolic666 20:55, 23 April 2007 (UTC)

Whoever left that comment didn't sign their name, but I can confirm that this is true in Firefox v2. --Antelan talk 00:18, 13 February 2007 (UTC)
I'm using Firefox 2.0 and I don't see them. -- Siobhan Hansa 03:30, 13 February 2007 (UTC)
I'm using Firefox 2.0.0.1 --Antelan talk 03:43, 14 February 2007 (UTC)