Stock Exchange

A stock exchange is the main forum for the trading of stocks and shares and other securities. In the UK the London Stock Exchange LSE is the main exchange.

The LSE grew out of a group of informal exchanges based in coffee houses dotted around the City of London. The way share dealing is carried out has undergone a revolution in the last decade or so.

Prior to the 1986 big bang the exchange operated a trading floor at its headquarters in Old Broad Street close to Bank tube in the City of London. Trading was largely face to face between jobbers and stockbrokers.

Post 1986 a technological and cultural revolution took hold. The deregulation of the London markets meant the end of face to face contact with the bulk of trading being transferred to dealing screens. Large open-plan trading rooms owned by banks and other large international organisations became the order of the day.

Jobbers ceased to be - their role was taken over by market makers - share traders who keep a quantity of shares in leading companies and then offer them to stockbrokers and fund managers.

See our guide to stockmarket investment. Looking for a stockbroker see our Daily Business Report.

2009-02-17 00:00:00 © Moneyextra.com