Exchanges (Noun)
An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded. The core function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information for any securities trading on that exchange. Exchanges give companies, governments and other groups a platform to sell securities to the investing public.
History of Exchanges
The first organized stock exchange was the Amsterdam Stock Exchange, which began trading in 1602. Since then, exchanges have become a cornerstone of the global financial system. Today, exchanges are regulated by national governments and are subject to the rules of the country in which they are located. Exchanges also have their own internal rules and regulations that must be followed.
In the United States, exchanges are regulated by the Securities and Exchange Commission (SEC). The SEC is responsible for ensuring that exchanges comply with federal securities laws and regulations. The SEC also oversees the activities of brokers and dealers who trade on the exchanges.
Comparison Table
| Exchange | Location | Year Established |
|---|---|---|
| Amsterdam Stock Exchange | Amsterdam, Netherlands | 1602 |
| New York Stock Exchange | New York, USA | 1792 |
| London Stock Exchange | London, UK | 1801 |
| Tokyo Stock Exchange | Tokyo, Japan | 1878 |
Summary
Exchanges are an integral part of the global financial system. They provide a platform for companies, governments and other groups to sell securities to the investing public. Exchanges are regulated by national governments and must comply with the rules of the country in which they are located. For more information about exchanges, visit the websites of the SEC, the New York Stock Exchange, the London Stock Exchange, and the Tokyo Stock Exchange.
See Also
- Securities
- Commodities
- Derivatives
- Financial Instruments
- Securities and Exchange Commission (SEC)
- Brokers
- Dealers
- Stock Market
- Bonds
- Futures
