What is Stock Exchange and what does it do? The Stock Exchange is a place that provides software(Trading Engine software) that facilitates people to trade(Exchange, sell or buy) the stocks that they already own or are willing to purchase. In general, The stock Exchanges don't provide the software directly to retail clients to trade on; Instead, we have to find the authorized brokerage firm that is registered with Exchange. The brokerage companies provide us the Trading software. Most brokerages buy software from vendors specialized in building trading software. Stock Exchange is a marketplace. Where all the stocks that are listed on the Exchange are available for people to trade. The Stock Exchange is not responsible for stock price variations that happen on day to day basis. The people(traders) who buy/sell stocks contribute to price fluctuations. What is a Stock or Share? Stock or share are the words that are used interchangeably. Share is a portion of ownership in th