A stock exchange is a market place where one can buy/sell stocks (Trade shares) with other members. Apart from stocks, other security instruments like bonds, ETFs, derivatives are also traded.

A stock exchange will offer memberships who can only do transactions in that stock exchange. Due to the high membership fees and complex nature of working, usually individual traders and investors trade through a member who is known as a stock broker.

Even high networth individuals (HNIs), Financial institutes many a time prefer to invest through a stock broker.

Usually stock exchanges facilitate transactions for the market known as secondary markets.

A stock exchange is a big part of a stock market.

More about these terms in coming chapters.