Exchange

An exchange is a marketplace in which securities, commodities, derivatives and other financial instruments are traded. The core function of an exchange – such as a stock exchange – is to ensure fair and orderly trading, as well as efficient dissemination of price information for any securities trading on that exchange. Exchanges give companies, governments and other groups a venue to sell securities to the investing public, and allow investors and institutions to trade securities conveniently.

An exchange may be a physical location where traders meet to conduct business or an electronic platform. Due to their efficiency, an increasing amount of trading is being done on electronic exchanges.

Exchanges also have requirements for the listing of securities. Shares of some exchanges are traded on stock exchanges as well.

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