Characteristics of a Stock Exchange

The requirements for a stock exchange to act as a platform for buying and selling securities is dependant upon the trading prerequisites.
Some of the prerequisites are:

• A marketplace that promotes the buying and selling of securities.
• The marketplace should be equally accessible to all participants.
• The marketplace should be reasonably fair and unbiased.
• The cost of participation in the marketplace represents a reasonably low percentage of the overall cost of the goods traded.
• There is a free flow of information regarding the rules of the market and the trades that occur on the market.
• Investors should look for the above prerequisites while taking up trading activity on any stock exchange.