Glossary entry
An exchange is an organized marketplace that brings together buying and selling interest under published rules. Depending on its structure, it may list instruments, operate trading systems, publish data, and coordinate with clearing organizations. The exchange, a broker that routes an order, and the issuer of a security perform separate functions within the market.
Illustrative example
A broker sends a share order to an exchange where it can match with another participant's interest. Clearing and settlement follow through the applicable arrangements.
What to consider
An exchange listing is not an endorsement of investment value. Trading halts, access rules, and product risks still apply.
General information, not a personal recommendation. Product availability, rights, and obligations are determined by the relevant provider, jurisdiction, and approved agreements.