DEFINITION of 'Prague Stock Exchange (PSE)'
The primary securities exchange of the CzechRepublic. The Prague Stock Exchange is the biggest organizer of the securities market in the CzechRepublic, and second largest in central and eastern Europe.
This exchange is divided into two types of investors. The big and medium investors trade on the SPAD system and the small investors trade on module auctions. Only licensed securities dealers who are members of the exchange are allowed access to its trading system.
BREAKING DOWN 'Prague Stock Exchange (PSE)'
In 2001 the exchange was an associate member of the Federation of the European Securities Exchanges (FESE), and in May, 2004, the Prague Stock Exchange became a full member of the FESE and was named the "designated offshore securities market" by the U.S. Securities and Exchange Commission, due to its reliability.