Exchange

An exchange is a marketplace where financial instruments such as stocks, bonds, commodities, and derivatives are bought and sold. Exchanges provide a regulated and standardized environment that facilitates trading, ensuring transparency, liquidity, and fair pricing. Major exchanges include the New York Stock Exchange (NYSE), Nasdaq, and Euronext. They serve as intermediaries between buyers and sellers, providing a platform for executing trades and settling transactions. Exchanges play a crucial role in the financial markets by enabling companies to raise capital, offering investors access to investment opportunities, and maintaining the integrity of the trading process.

Example

The New York Stock Exchange (NYSE) is one of the largest and most recognized exchanges in the world, where publicly traded companies list their stocks for investors to buy and sell.