Posted in Finance, Accounting and Economics Terms, Total Reads: 325
Definition: Regional Stock Exchange
A regional stock exchange refers to an institution apart from a country’s primary financial centre, where stocks in certain publicly listed companies are traded. A regional stock exchange allows companies to trade which do not qualify for the main stock exchange of the company.
It encourages market participation of smaller companies. These regional stock exchanges are smaller compared to NYSE, NASDAQ, etc. This is a term commonly used in the US to describe stock exchanges operating outside of the main financial center that is the NYSE – New York Stock Exchange in New York City.
Advantages of a Regional Stock Exchange
• Promotes increased number of listings
• Promotes liquidity and capitalization across companies
• Promotes competition in financial markets through increased market participation