Question

Historically, stock exchanges were owned, controlled and managed by ______________________________.

• A. Government officials
• B. Private investors
• C. Brokers
• D. Banks

Hint:

Originally, brokers not only traded in stock exchanges but also owned and governed them through mutual memberships.

Answer 1

The Correct Option is C

Historically, stock exchanges around the world were owned, controlled, and managed by brokers (Option C). These brokers were individuals or firms who facilitated buying and selling of securities on behalf of clients.
They operated the exchange as a mutual organization where membership (often expensive and limited) gave the right to trade on the exchange floor. Because they directly handled transactions, they also had control over the governance and operations of the stock exchange.
- Option (A) Government officials typically regulated stock exchanges but did not own or control them.
- Option (B) Private investors may have participated in trading but did not manage the exchanges.
- Option (D) Banks were participants in markets but were not the controlling entities of exchanges.
Today, many stock exchanges have been demutualized, meaning they are now owned by shareholders and operated as for-profit companies rather than being run solely by brokers.