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Meaning of stock exchange market and terms used

Answer Text:
THE STOCK EXCHANGE MARKET
-This refers to a market where shares of companies and securities of quoted companies and securities of quoted companies, government and local authorities are brought and sold.
Definitions:
-Stock: a group of shares in a public limited company
Stocks are formed when all the authorized shares in a particular category have been issued and fully paid for.
-Stock exchange market: is a market where stocks from Quoted companies are bought and sold
Stock exchange markets enable share holders in public companies to sell their shares to other people, usually members of the public interested in buying them.
-A Quoted Company: is a company that has been registered (listed) as a member of the stock exchange market.
Companies that are not quoted cannot have their shares traded in the stock exchange market.
-Securities: this could either refer shares or documents used in support of share ownership
-Initial Public Offer (I. P. O): refers to situations in which a company has floated new shares for public subscription ( Has advertised new shares and has invited members of the public to buy them
-Shares:This is a unit of capital of a company.
-Ordinary Shares- also referred to as common shares have a lower priority for company assets.
-Preference shares- are also known as preferred shares. They have a higher priority to claim assets of a corporation incase of a solvency.
-Deferred share- this is a share that does not have rights to the assets of a company undergoing bankruptcy unit all common and preferred shareholders are paid.
-Debentures-This is a unit of loan borrowed by a public limited company from the public. A debenture earns fixed rate of interest.