The stock exchange is an organized market which specializes in the sale and purchase of securities such as shares, stocks, and bonds. In the most developed capitalist countries, the stock exchange functions as a ready market for securities, encouraging people to channel their savings into corporate investments. In addition, the stock exchange acts as a pricing mechanism, determining prices that reflect the true investment value of a company's stock. The membership requirements of exchanges vary mainly with respect to the number of members, the degree of bank participation, the rigor of the eligibility requirements, and the degree to which government participates in their management.