What is the typical concept of a 'stock exchange'?

The typical concept of a 'stock exchange' refers to a place where stocks are traded, which encompasses both physical and virtual environments. A stock exchange serves as the marketplace for buyers and sellers to come together and conduct the trading of shares in publicly listed companies. This can involve trading that happens in a physical building, like the New York Stock Exchange, where transactions take place on the trading floor, as well as trading that can occur through electronic platforms that facilitate trades online.

The definition of a stock exchange highlights its regulatory framework, providing a structured and organized system for trading. Unlike an unregulated market, stock exchanges operate under a set of regulations that ensure transparency, protect investors, and maintain fair trading practices. Thus, the concept embodies a formal environment for trading assets, rather than being solely a physical establishment or just a virtual space.