Legal Definitions - stock exchange

A stock exchange is a place where people buy and sell stocks, which are like little pieces of ownership in a company. When you buy a stock, you become a shareholder, which means you own a small part of that company. The stock exchange keeps track of who owns what stocks and helps people buy and sell them. There are different important dates related to stocks, like the date you become a shareholder, the date you get paid dividends (which is like a little bonus for owning the stock), and the date you have to pay for the stocks you buy.