Exchange

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-An exchange is simply a market in which [[stock]]s, [[bond]]s, [[commodities]], [[option]]s, and/or [[futures]] are traded. +{{Glossary|A market in which [[stock]]s, [[bond]]s, [[commodities]], [[option]]s, and/or [[futures]] are traded.}}
-To be traded, a [[security]] must list on an exchange, a central place where buyers and sellers meet. The two big [[U.S. stock exchanges]] are the esteemed [[NYSE]] and the fast-growing [[NASDAQ]]; companies listed on either of these exchanges must meet various minimum requirements and baseline rules concerning the "independence" of their boards. But these are by no means the only legitimate exchanges. [[Electronic communication networks]] (ECNs) are relatively new, but they are sure to grab a bigger slice of the transaction pie in the future. +To be traded, a [[security]] must list on an exchange, a central place where buyers and sellers meet. The two big U.S. stock exchanges are the esteemed [[NYSE]] and the fast-growing [[NASDAQ]]; companies listed on either of these exchanges must meet various minimum requirements and baseline rules concerning the "independence" of their boards. But these are by no means the only legitimate exchanges. [[Electronic communication networks]] (ECNs) are relatively new, but they are sure to grab a bigger slice of the transaction pie in the future.
-There are auction based exchanges, which means [[specialist]]s are physically present on the exchanges’ [[trading floor]]s. Each specialist "specializes" in a particular stock, buying and selling the stock in a verbal auction. These specialists are under competitive threat by electronic-only exchanges that claim to be more efficient (that is, execute faster trades and exhibit smaller [[bid-ask spread]]s) by eliminating human intermediaries.+There are auction based exchanges, which means [[specialist]]s and/or [[floor trader]]s are physically present on the exchanges’ [[trading floor]]s (a.k.a [[pit]]s). Each specialist "specializes" in a particular stock, buying and selling the stock in a verbal auction. These specialists are under competitive threat by electronic-only exchanges that claim to be more efficient (that is, execute faster trades and exhibit smaller [[bid-ask spread]]s) by eliminating human intermediaries.
 + 
 +A byproduct of exchange trading is [[price transparency]].
==Stock Exchanges== ==Stock Exchanges==
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*[[Paris Bourse]] *[[Paris Bourse]]
-For more info, see [[Stock Exchange]]s+For more info, see [[:Category:Stock Exchanges]]
==Futures and Options Exchanges== ==Futures and Options Exchanges==
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*COMEX *COMEX
*[[Tokyo International Financial Futures Exchange]] (TIFFE) *[[Tokyo International Financial Futures Exchange]] (TIFFE)
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 +==See Also==
 +*[[Delayed opening]]
 +*[[Circuit breaker]]
[[Category:Exchanges]] [[Category:Exchanges]]

Current revision

Definition:
A market in which stocks, bonds, commodities, options, and/or futures are traded.


To be traded, a security must list on an exchange, a central place where buyers and sellers meet. The two big U.S. stock exchanges are the esteemed NYSE and the fast-growing NASDAQ; companies listed on either of these exchanges must meet various minimum requirements and baseline rules concerning the "independence" of their boards. But these are by no means the only legitimate exchanges. Electronic communication networks (ECNs) are relatively new, but they are sure to grab a bigger slice of the transaction pie in the future.

There are auction based exchanges, which means specialists and/or floor traders are physically present on the exchanges’ trading floors (a.k.a pits). Each specialist "specializes" in a particular stock, buying and selling the stock in a verbal auction. These specialists are under competitive threat by electronic-only exchanges that claim to be more efficient (that is, execute faster trades and exhibit smaller bid-ask spreads) by eliminating human intermediaries.

A byproduct of exchange trading is price transparency.

[edit] Stock Exchanges

There are stock exchanges in many world capitals and major cities. These include:

For more info, see Category:Stock Exchanges

[edit] Futures and Options Exchanges

[edit] See Also