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Definition of 'Exchange'
A marketplace in which securities, commodities, derivatives and other financial instruments are traded. The core function of an exchange - such as a stock exchange - is to ensure fair and orderly trading, as well as 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.
An exchange may be a physical location where traders meet to conduct business or an electronic platform.
May also be referred to as "share exchange" or "bourse" depending on geographical location.
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