What is a Stock Market Exchange?

You know what a market is. It is where goods and/or services are bought and sold. You know what the stock market is. It is where stock is bought and sold. Where exactly do you go to buy and sell stocks? Where does this all take place?

This is where stock exchanges come into place. An exchange is where the actual physical exchange happens. When you want to sell 100 shares of stock, you don't just ask around to find someone who's buying. You have to go to an exchange.

Of course, you don't physically go to the exchange yourself. You must use a brokerage firm and a stock broker will go and buy and sell for you.

There are many different stock exchanges all over the world. You may have heard of the New York Stock Exchange (NYSE), but there are others as well including the London Stock Exchange, the Tokyo Stock Exchange, the Australian Securities Exchange, and the NASDAQ, which is an electronic exchange. There are many more.

Stock Exchanges are critical for the stock market to run smoothly. They allow buyers and sellers to trade stocks all over the world.

Not every company is listed on every exchange. Each corporation will be listed on one exchange, depending on where it is located. For example, a Japanese company will not be listed on the NYSE, it will probably be listed on the Tokyo Stock Exchange.