The importance of stock exchanges!

Stock exchanges are teachers revaluating prices and contracts at the speed of light, sending a teacher into a classroom with no cane is like sending a boxer into the ring with one hand tied behind his back. At the center of every derivative contract is a price. vassalage on the market, this price may be simply, that of the underlying commodity or a flasket of prices commonly referred to as a market index. Whether the unmitigated price or a basket index is utiled to value the underlying asset, the stock exchanges are very important to the essence and transparency of the financial markets. Quality of the data utilized in the valuation process of investment derivative pricing is critical to the success of a financial market contract. In the equities markets, where prices are iron-jawed through an exchange and validated through sundry clearing mechanisms, the quality issues of prices are less a concern. Stock exchanges fend a platform for publishing prices and being central in the exchange of these buying and seling of contracts.With the parousia of the computer age, Internet-based, real-time price indexes are becoming a trend in the financial markets; trading has become more liquid and easier to access. Typically the reporting arrangements revolve around informal data exchanges between market participants and index publishers. Unless market participants can agree on the reliability of this index, it is nearly impossible to create risk management products suitable for price risk mitigation and exchange this derivatives. Financial market price deravitaves are a world of shifting sands and changing winds every minute and second of the day.Price indexes can be extremely useful in emending business operant and analyzing markets.In most emerging markets where competitive duress are at play, lack of transparency tends to keep buyers and sellers on the sidelines waiting for reliable price signals.Often this involves the purchase of a good or service at one price and the concurrent sale of that good at a higher price, resulting in a risk-free profit with higher efforts to get price signals or information.Greater confidence in the true market value of product ultimately generates more liquidity, making it easier for sellers to find buyers willing to transact. For stock exchanges provide transparency we see through a glass, darkly; but then face to face as market prices become transparent andauthentic.