Plain-English definitions, reviewed by an independent investor
Exchange
An exchange is the regulated venue where stocks, bonds, or derivatives are listed and traded.
An exchange is the regulated venue where stocks, bonds, or derivatives are listed and traded.
(A regulated marketplace, not a formula)
Why it matters
It is the plumbing that makes prices fair and orders fillable.
Common confusion
Most trading is electronic now, but the venue still sets rules and surveillance.
Frequently Asked Questions
NYSE vs Nasdaq?
Different venues and listing styles; both are major U.S. exchanges.
How is price set?
By matching buy and sell orders continuously through the day.