{"id":18522,"date":"2022-02-17T19:00:00","date_gmt":"2022-02-17T11:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/stock-exchange-what-2022.html"},"modified":"2026-03-26T16:00:20","modified_gmt":"2026-03-26T08:00:20","slug":"stock-exchange-what-2022","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/investments\/stock-exchange-what-2022.html","title":{"rendered":"Stock Exchange: What Is It &#038; How Does It Work"},"content":{"rendered":"\n<p><img data-recalc-dims=\"1\" decoding=\"async\" width=\"640\" height=\"334\" src=\"https:\/\/i0.wp.com\/144634072.fs1.hubspotusercontent-eu1.net\/hubfs\/144634072\/assets_comparehero\/stock-exchange-what-2022-featured-image-1.png?resize=640%2C334&#038;ssl=1\" alt=\"stock-exchange-what-2022-featured-image\" loading=\"lazy\" srcset=\"https:\/\/144634072.fs1.hubspotusercontent-eu1.net\/hubfs\/144634072\/assets_comparehero\/stock-exchange-what-2022-featured-image-1024x535-1.png 1024w,https:\/\/144634072.fs1.hubspotusercontent-eu1.net\/hubfs\/144634072\/assets_comparehero\/stock-exchange-what-2022-featured-image-300x157-1.png 300w,https:\/\/144634072.fs1.hubspotusercontent-eu1.net\/hubfs\/144634072\/assets_comparehero\/stock-exchange-what-2022-featured-image-768x402-1.png 768w,https:\/\/144634072.fs1.hubspotusercontent-eu1.net\/hubfs\/144634072\/assets_comparehero\/stock-exchange-what-2022-featured-image-2.png 1201w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"><\/p> \n<p>Whether you are new to investing or not, you probably would have heard of the term \u2018stock exchange\u2019 or \u2018stock market\u2019. While you may get the gist of what it is about, it\u2019s always best to understand it a little deeper. Here are the things you need to know about a stock exchange and how it works:&nbsp;<\/p> \n<!--more--><h2><b>What is a stock?<\/b><\/h2> \n<p>A stock, also known as a share or a company\u2019s equity, represents the ownership of a business or company that has a claim on the asses or earnings.&nbsp;<\/p> \n<h2><b>What is a stock exchange?<\/b><\/h2> \n<p>Not to be confused with a stock market, which is the concept of buying and selling shares among companies.&nbsp;<\/p> \n<p>The best definition to describe a stock exchange would be that it is a marketplace where bonds, stocks and other types of securities are being sold and bought. It is a way for a company to raise funds or capital while getting potential investors or companies to be transparent as well as for the public to get a glimpse of the true value of the investment.<\/p> \n<h2><b>How does a stock exchange work?&nbsp;<\/b><\/h2> \n<p>Understanding a stock exchange is basically for buyers and sellers to make trades while negotiating the prices as well. It is a network of exchanges where companies or businesses will list their shares, which goes through a process called IPO (initial public offering).&nbsp;<\/p> \n<p>Investors would purchase the shares and enable the companies to grow and expand with the help of the money. Besides that, investors are allowed to exchange the stocks bought among each other too.&nbsp;<\/p> \n<p>The trade happens when the buyer offers a \u2018bid\u2019 which is the highest amount of money they are willing to pay. It would be significantly lower than the amount the sellers requested in exchange. This is also called a \u2018bid-ask spread\u2019, hence to trade, the buyer should increase the price or vice versa.&nbsp;<\/p> \n<p>Usually, the calculations will automatically be updated so you won\u2019t have to worry too much about making sure the amount is done right, especially if you are a beginner.&nbsp;<\/p> \n<p>There are specific names of stock exchanges such as:&nbsp;<\/p> \n<ul> \n <li style=\"font-weight: 400;\" aria-level=\"1\">NASDAQ (US-based)<\/li> \n <li style=\"font-weight: 400;\" aria-level=\"1\">Japan Exchange Group<\/li> \n <li style=\"font-weight: 400;\" aria-level=\"1\">Bursa (Malaysia)<\/li> \n <li style=\"font-weight: 400;\" aria-level=\"1\">New York Stock Exchange&nbsp;<\/li> \n <li style=\"font-weight: 400;\" aria-level=\"1\">London Stock Exchange (London-based)<\/li> \n<\/ul> \n<h2><b>What to do when you want to buy a stock?<\/b><\/h2> \n<p>&nbsp;Once you decide to become an investor, you\u2019ll have to go through a broker which will help you with the transaction. The steps are as follows:<\/p> \n<p><b>Step 1:<\/b> Let your broker know which stock you\u2019d like to buy and how many shares you\u2019d like to take up&nbsp;<\/p> \n<p><b>Step 2:<\/b> The broker will pass over the order to the stock exchange whereby the market maker would sell off the shares with the current price rate of the market.&nbsp;<\/p> \n<p><b>Step 3:<\/b> Finally, the shares will be transferred over to your investment account.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Whether you are new to investing or not, you probably would have heard of the term \u2018stock exchange\u2019 or \u2018stock market\u2019. While you may get the gist of what it is about, it\u2019s always best to understand it a little deeper. Here are the things you need to know about a stock exchange and how&#8230;<\/p>\n","protected":false},"author":268230141,"featured_media":1666,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"{title}\n\n{excerpt}\n\n{url}","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false,"jetpack_post_was_ever_published":false},"categories":[424],"tags":[],"class_list":["post-18522","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investments"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Stock Exchange: What Is It &amp; 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To get a better understanding of ETFs, CompareHero.my spoke to experts from Affin Hwang Asset Management. Though Exchange Traded Funds (ETFs) are not new, they have grown to be highly favourable among investors, sustaining their growth over the\u2026","rel":"","context":"In &quot;Investments&quot;","block_context":{"text":"Investments","link":"https:\/\/www.comparehero.my\/blog\/investments"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/what-is-etf-malaysia.jpg?fit=1200%2C628&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/what-is-etf-malaysia.jpg?fit=1200%2C628&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/what-is-etf-malaysia.jpg?fit=1200%2C628&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/what-is-etf-malaysia.jpg?fit=1200%2C628&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/what-is-etf-malaysia.jpg?fit=1200%2C628&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":8146,"url":"https:\/\/www.comparehero.my\/blog\/investments\/bursa-series-investing-evaluate-stocks-2.html","url_meta":{"origin":18522,"position":1},"title":"Bursa Investing Series 1: How To Choose A Stock","author":"CompareHero","date":"18 August 2016","format":false,"excerpt":"Now that you know the 5 basic steps to start investing in the stock market, it\u2019s time to dig a little deeper and learn how to evaluate stocks to improve your investment decision. It\u2019s important to know that investing in stocks is a long-term decision, and leveraging on the power\u2026","rel":"","context":"In &quot;Investments&quot;","block_context":{"text":"Investments","link":"https:\/\/www.comparehero.my\/blog\/investments"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2016\/08\/image-1.png?fit=1024%2C768&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2016\/08\/image-1.png?fit=1024%2C768&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2016\/08\/image-1.png?fit=1024%2C768&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2016\/08\/image-1.png?fit=1024%2C768&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":18116,"url":"https:\/\/www.comparehero.my\/blog\/investments\/gold-investment-currency-pros-cons.html","url_meta":{"origin":18522,"position":2},"title":"Gold\u200c \u200cas\u200c \u200can\u200c \u200cInvestment:\u200c \u200cIs\u200c \u200cIt\u200c \u200cStill\u200c \u200cWorth\u200c \u200cIt?\u200c","author":"CompareHero","date":"9 November 2021","format":false,"excerpt":"Since the commencement of the stock markets, gold has gained quite the reputation to have a negative correlation to stocks while having a positive correlation to inflation. 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Now some of them have voiced that they do want to look for alternatives \u2013 like investing\u2026","rel":"","context":"In &quot;Investments&quot;","block_context":{"text":"Investments","link":"https:\/\/www.comparehero.my\/blog\/investments"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2016\/07\/image-3.png?fit=1024%2C768&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2016\/07\/image-3.png?fit=1024%2C768&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2016\/07\/image-3.png?fit=1024%2C768&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2016\/07\/image-3.png?fit=1024%2C768&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":18038,"url":"https:\/\/www.comparehero.my\/blog\/investments\/what-are-derivatives.html","url_meta":{"origin":18522,"position":4},"title":"Derivatives 101 in Malaysia","author":"CompareHero","date":"8 November 2021","format":false,"excerpt":"\u00a0 \u00a0 By Smart Investor\u00a0\u00a0 Savvy investors can multiply potential gains by capitalising on the leverage effect offered by derivatives, regardless of market movement. 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