Stock Exchange is an organization whose business is to ensure the necessary conditions for normal circulation to determine their market prices and disseminate information about them, maintaining a high level of professionalism of the participants.
It is a non-profit organization, it does not pursue the goal of obtaining its own profit, it is based on self-sufficiency and does not pay income from its activities to its members. A person can carry out the activities of a stock exchange if it is a non-profit partnership.
The person carrying out the activity of the stock exchange has no right to combine the specified activity with other types of activity, except for the activities of the currency exchange, the commodity exchange (activities for organizing exchange trade), clearing activities related to the clearing of transactions.
The stock exchange performs the following main functions
1. The organization of exchange meetings for conducting public tenders: 1a) The organization of exchange trades; 2b) Development of rules of exchange trade; 3c) Mat-tech support of trades; 4d) Qualified exchange office.
2. Development of exchange contracts:
a) standardization of requirements for qualitative characteristics of exchange commodities; b) standardization of lot sizes; c) development of unified requirements for settlements on exchange transactions.
3. Settlement of disputes in exchange transactions.
4. Identification and regulation of exchange prices.
5. Exchange insurance of participants of exchange trade from unfavorable price fluctuations.
6. Guaranteed execution of transactions is achieved by means of exchange clearing and settlement systems.
7. Information activity of the exchange.
The stock exchange has the right to establish quantitative restrictions on the number of its members. The share (share) gives the opportunity to use the rights of a member of the exchange. They express the value of the “place” on the stock exchange. The place is the property of a member of the exchange.