What is an Exchange?

An exchange is where buyers and sellers come together to trade stocks and shares, commodity, derivatives markets for currencies and other financial instruments.

Today's exchanges are strictly regulated to ensure that the market is well organized and that operations are fair and orderly. The exchange takes a recognized approach to sharing and presenting price information to potential buyers and sellers, and follows clear rules that detail how buyers and sellers operate.

Companies wishing to trade their shares on the stock market are required to provide regular information to the market, including regular financial reports and audited accounts. Some exchanges also have minimum funding requirements.

Where have you heard of the Exchange?

Economic news often refers to stock prices moving higher or lower in the stock market. A stock exchange is a place where stocks are bought and sold.

Similarly, if you hear that the price of crude oil is rising, it means that in the millions of barrels per day of crude oil contract sales. New York Mercantile Exchange in the market, crude oil will appreciate.

What you need to know about the exchange...

The exchange began with an "open quote" system, similar to what fruit and vegetable vendors bid in a vegetable farm. But today most transactions are done electronically and prices are displayed on a screen.

The world's oldest stock exchange is located in Amsterdam, the Netherlands. Its founded in 1602, it trades in printed shares of the Dutch East India Company.

Today, stock exchanges are all over the world, including the most well-known new York Stock Exchange (NYSE), london Stock Exchange (LSE), NASDAQ and tokyo Stock Exchange.

In addition, there are exchanges that specialize in trading specific products. Such as the World Industrial Metals Trading Center london Metal Exchange and specialized trading of commodities and equity derivatives. Intercontinental European Exchange.