Bourse
In short
A bourse is a centralised marketplace where securities, such as stocks and bonds, are traded between buyers and sellers.
In plain words
It is a formal place where people buy and sell pieces of companies. These markets follow strict rules to make sure trading is fair and organised.
A simple example
An investor goes to the Paris Bourse to buy shares in a French technology firm. This allows the company to raise money while the investor gains ownership.
Why it matters
Bourses provide the liquidity needed for economies to grow. They allow businesses to find capital and investors to build wealth through regulated trading.
Easy to mix up
It is often confused with a simple commodity exchange, though a bourse specifically focuses on financial instruments like stocks.