A stock exchange is an entity that is registered with the Securities and Exchange Commission (SEC) to provide services to its members to trade securities. The stock exchange provides a meeting place and equipment and services necessary for members to gather for the specific purpose of buying and / or sale of securities.
About the exchange
The stock exchange has as one of its responsibilities to oversee the activities of its members for strict compliance, not just the rules of stock exchange, but with all the rules and regulations governing broker / dealers. All members of the bag also have their filings with the SEC. You can not negotiate in the bag unless you are a member of the stock.
Consider this
Many companies register with the specific stock exchange so that their actions can be negotiated by exchange members. Changing monitors the companies and compliance with respect to financial reporting and disclosure to shareholders.
The main advantage
It offers a change of "compliance" with rules and regulations. Not only confirm that its members and companies agree that the rules of the SEC, but also the companies that list their securities on the stock exchange to be traded must be in accordance with the rules of the SEC.
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