by the competitors prevailing in the market. Investors always want to have liquid money as much as possible. To have capital or money in hand there must be a place where they can exchange. Stock exchange is a place where securities of different companies can be purchased and sold. They help in regulating and controlling the business of buying and selling securities. According to Hartely Withers, “ A Stock Exchange is something like a vast warehouse where securities are taken away from the shelves and sold across the countries at a fixed price in a catalogue which is called the official list. The trading in an exchange is strictly regulated and rules are prescribed for various transactions. The securities of trusts, corporations, governments, etc. are allowed to be dealt at stock exchange. It is a place where securities are purchased and sold. Provides liquidity. Evaluation of prices. Helpful in raising new capital. Safety. Mobilizing of savings into proper areas. Memorandum( summary used as a means of communication or to outline the terms of an agreement in its draft stage) and Articles of Association (it is a document that contains the purpose of the company as well as the duties and responsibilities of its members defined and recorded clearly.) Copies of all prospectus. Copies of balance sheets, audited accounts, agreements with brokers, underwriters, etc. Details of shares and debentures issued and shares forfeited. Details of issue of bonuses and dividends declared. History of the company in brief. An agreements with managing directors. An undertaking regarding compliance with the provisions of the Companies Act, 1956 and Securities Contracts(Regulation) Act, 1956 as well as rules made therein. A list of the highest ten holders of each class or kinds of securities of the company. Selection of a brokers. Placing an order. Making the contract. Contract note. Settlement. In India Stock Exchange was not known before 1840. One of the earliest stock exchange is Bombay stock Exchange which came in 1887. The Calcutta Stock Exchange was found in 1908. In Madras it was founded in the year 1920, but due to paucity of business it was closed in year 1923. It again came back in the year 1937 with the same name. However different stock exchange was opened at different places in India such as in Ahmadabad, Kanpur, Hyderabad, Delhi, Indore and Bangalore. Under 1956, the Securities Contract (Regulation) Act was passed to regulate the stock exchange and have a centralized control over them. Only 8 stock exchanges have been so far recognized . They are: The Stock Exchange, Bombay. The Calcutta Stock Exchange Association, Calcutta. The Ahmadabad Share and Stock Brokers’ Association, Ahmadabad. The Madras Stock Exchange Ltd., Madras. The Delhi Stock Exchange Association Ltd. The Hyderabad Stock Exchange Ltd., Hyderabad. The Stock Exchange, Indore. The Stock Exchange, Bangalore. The administration of the affairs of a stock exchange is entrusted to a Committee of Management that functions like a Board of Directors of a company. To understand these terms we will take example of London Stock Exchange. Where both Jobbers and Brokers are totally different in terms of services they provide. Individual has to choose between those. No member can change over from a broker to a jobber or from a jobber to a broker during a year. Since in stock exchange you need a broker to carry out the activity. So they act as an intermediary for clients on their behalf. Brokers who do transactions on the behalf of their customers go and deal with these jobbers who sit inside the house. Thus a broker is a commission agent who brings together his outside client and the inside jobber who is a dealer in securities.