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Cranbrook School

How the Stock Exchange is growing

Written and edited by Isabella, Nathan, Darius and Polly.

Year 10 interview exclusive – see what they knew about the Stock Exchange

This is an article on the Stock Exchange. The Stock Exchange happens at a Stock Market, where securities are bought and sold. Big companies and governments can raise money by channelling savings of the investors into productive ventures. An example of a Stock Exchange is the London Stock Exchange which is the third largest in the world. It was founded in 1801 and is one of the world’s oldest Stock Exchanges. It is situated in Paternoster Square and its trading hours are 8:00-16:30. A broker is a person who is licensed to trade stock through the exchange. An exchange is like a warehouse in which people buy and sell stocks.

The business in a Stock Exchange can change due to current events. At a Stock Exchange, lots of people buy small parts of businesses to try and gain more money. But, if the company loses money then the person also loses money. If their company gains money, then the person gains money as well, so they have to be confident in their company so they don’t lose too much money. There are four different types of stock: growth stocks, defensive stocks, dividends and new issues. Lots of people own these to get a balanced hand.



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