A securities exchange is a regulated marketplace where buyers and sellers trade financial securities such as stocks, bonds, derivatives, and other instruments. Major examples include the New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange, and Tokyo Stock Exchange.
Securities exchanges provide a transparent and organized platform for trading, ensuring fair pricing through supply and demand mechanisms. Companies list their shares on exchanges through Initial Public Offerings (IPOs) to raise capital from public investors.
Exchanges play a crucial role in the economy by facilitating capital formation, providing liquidity, and enabling price discovery. They are regulated by government agencies to protect investors and maintain market integrity.