A stock exchange is a form of exchange that provides services for stock brokers and traders to trade stocks, bonds, and other securities. It also provides facilities for the issue and redemption of securities and other financial instruments and capital events including the payment of income and dividends.

The Nigerian Stock Exchange is an organized market that uses electronic networks to buy and sell stocks. Trading on the Nigerian stock exchange increases the speed of operation, reduces the cost of transactions and less emphasis is now on the physical place.

Classification of stock exchange 

• Primary market
• Secondary market

Primary market: This is where the initial offering of stocks and bonds exchange hands.

Secondary market: This is where second-hand stocks are traded.

Roles of stock exchange

• Raising capital for business
• Mobilizing savings for investments
• Facilitating company growth
• Profit sharing 
• Corporate governance
• Creating investment opportunities for small investors
• An avenue for the government to borrow funds to finance projects
• Barometer of the economy 

Evaluations:

1. Define stock exchange
2. Mention and explain two classes of stock exchange
3. Outline five roles of the stock exchange