stock exchange

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stock exchange (stock market, securities exchange) Organized market for the buying and selling of stocks and shares issued by corporations. The stock exchange allows for the speculative purchase of stock in the hope that the price will increase, and thus yield a profit to the investor, or provide dividend payment giving a fair rate of return on the investment. Stockbrokers act as the agents in the purchase and selling of stocks and shares. There are exchanges in major cities throughout the world, with the largest in New York, Tokyo, and London.

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