What is stock exchange and its functions?

A stock market is a place where investors can buy and sell financial instruments like stocks, bonds, etc. Many intermediaries in the stock market facilitate trade like stock exchanges, depository participants, custodians, brokers, banks, etc.

A stock exchange is a platform that allows investors to trade securities at the market price. There are two major stock exchanges in India – the National Stock Exchange or NSE and the Bombay Stock Exchange or BSE.

A stock exchange performs the following functions:

• It determines the market price of securities based on their demand and supply.

• You can only trade in stocks that are listed on a stock exchange. The listing happens after the exchange verifies various aspects of the company. This helps make dealing in stocks secure.

• It regulates new share issues, initiates better trading practices, and spreads awareness about stock investing among people.

• It provides a ready market for buying or selling securities. This assures investors that they can convert their shares into cash whenever they want.

• Stock exchanges allow healthy speculation to ensure liquidity and offer opportunities to investors to benefit from fluctuating stock prices.

• A stock exchange is an indicator of the economic conditions of a country.

• It ensures that listed companies submit their balance sheet and annual report to control the trading environment and protect the investors.
Great tips which help understand what the stock market is all about. However, stock exchange is not responsible for the control of the operations. It is a sphere of officials like SEC and so on.
All actions are the sole responsibility of the investor.
This should be understood from day one.
Otherwise you won't get anywhere.