What is the difference between a stock market and stock exchange?

Some may assume that the stock market and the stock exchange are the same, but actually, they have some differences that will be important to know. The stock market is the term that is used to signify the trading of different stocks. The stock exchange is known to be a part of the stock market.

The stock exchange is usually a company that allows the stocks to be traded by showing the services and the requirements that are needed to ensure that the exchange is going to take place. There are different listing requirements that are available to ensure that the stocks will stay listed in the stock exchange.

A stock market is a very general term used to describe a place where stocks are traded. To help you remember this, think of a flea market where you would go to buy and sell antiques or other items. A stock exchange is a more specific term used to describe the name of the stock exchange. Here is an example: If you buy and/or sell stock shares you are participating in the stock market. However if you buy/sell shares on the NYSE, it means you are participating in stocks included on the New York Stock Exchange.

Examples of other stock exchanges include the National Association of Securities Dealers Automated Quotations (NASDAQ). There are stock exchanges all over the world. Some of the more well-known exchanges are BSE Limited (India), London Stock Exchange (United Kingdom) and Japan Exchange Group (Japan).