Stock Exchange is an organized market for buying and selling financial instruments known as securities, which include stocks, bonds, options, and futures. Most stock exchanges have specific locations where the trades are completed. For the stock of a company to be traded at these exchanges, it must be listed, and to be listed, the company must satisfy certain requirements.

But not all stocks are bought and sold at a specific site. Such stocks are referred to as unlisted. Many of these stocks are traded over the counter-that is, by telephone or by computer.

The stock exchange is a market where stocks and shares are bought and sold. It consists of jobbers and brokers, who buy and sell shares for individual and other institutions such as Bank Trustees, Insurance Firms, Industries and other financiers.

Business is mainly by phone and may be on cash or credit basis. A Customer who wishes to buy or sell stock approaches a stock-broker to do it for him. The broker then approaches the jobber and asks him for his price. He does not state whether he wants to buy or sell. The jobber quotes two prices say Shs. 80/= and Shs. 85/=. The lower price is the one he is willing to buy at and the higher price is his selling price.

Once a share has been sold to another person by the original shareholder a document called a share transfer form must be drawn between the two parties, to confirm that the person named has become the new shareholder.