Exchange

An exchange is a marketplace where buyers and sellers meet to trade financial instruments, such as stocks, bonds, and commodities. Exchanges are typically regulated by government agencies, such as the Securities and Exchange Commission (SEC) in the United States.

There are two main types of exchanges:

* **Stock exchanges**, where companies trade their shares.
* **Commodity exchanges**, where traders trade physical commodities, such as oil, gold, and corn.

Stock exchanges are typically organized into two parts: a trading floor and a trading system. The trading floor is where traders meet in person to execute trades. The trading system is an electronic platform that allows traders to trade shares without having to be physically present on the trading floor.

Commodity exchanges are also typically organized into two parts: a trading pit and a trading system. The trading pit is where traders meet in person to execute trades. The trading system is an electronic platform that allows traders to trade commodities without having to be physically present on the trading floor.

Exchanges play an important role in the financial system by providing a centralized marketplace for buyers and sellers to trade financial instruments. Exchanges also help to ensure that the prices of financial instruments are fair and transparent.