An exchange is a regulated platform where financial instruments like stocks, bonds, commodities, and derivatives are bought and sold. Exchanges bring together buyers and sellers and provide a transparent, organized marketplace for trading.
Examples include the New York Stock Exchange (NYSE) for equities and the Chicago Mercantile Exchange (CME) for commodities and derivatives. Exchanges often have specific listing requirements for companies and trading rules to ensure fair and transparent transactions. They play a crucial role in providing liquidity and price discovery in financial markets.
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