Vocabulary Development: Stock Exchange And Insurance

Stock Exchange is a market where those who wish to buy or sell shares, stocks and government bonds, debentures and other securities can do so through only members of the stock exchange. The stock exchange provides the essential facilities for company and government to raise money for business expansion and development projects through investors who […]

Stock Exchange is a market where those who wish to buy or sell shares, stocks and government bonds, debentures and other securities can do so through only members of the stock exchange. The stock exchange provides the essential facilities for company and government to raise money for business expansion and development projects through investors who own shares in companies.

 

Some relevant words:

Stock broker: One who operates in the stock exchange market by linking buyer and sellers of securities.

Security: A paper asset including government debt, company shares and company debt

Stock: This is synonymous to shares

Stock exchange: An institution through which shares are traded/ it is a security market

Bond: A security with a redemption date over a year later than its date of issue.

Shares: Any of the equal, usually small, part into which a company’s capital stock is divided.

Share certificate: A certificate specifying the number of shares owned by a person or a company,

Bond: A certificate issued by a government or a company promising to pay back borrowed money on a specific date.

Debenture: A certificate that acknowledges the existence of a debt of a particular amount owed to somebody.

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