Stock exchanges exist for companies to raise money by allowing the public to participate through shares trading. When you distill the process down to the core, think of the bourse as your local store. You buy 20% of the equity and the store owner will take that money probably to open up a new store.

Most of the public assumes that a stock exchange is just a marketplace where people buy or sell stocks. That is a correct assumption. But that is not all that a stock exchange is. Defining a Stock Exchange in a more particular sense, they are really firms or an organization that offer services to the