The Exchange (Finance)

The Exchange in finance refers to a marketplace where buyers and sellers trade financial assets, such as stocks, bonds, commodities, and currencies. Major exchanges, like the New York Stock Exchange or NASDAQ, facilitate these transactions by providing a platform for price discovery, ensuring fair trading, and maintaining orderly transactions. Participants include individual investors, institutions, and traders, all aiming to buy low and sell high for profit. The exchange plays a crucial role in the economy by helping companies raise capital and providing investors access to investment opportunities.