A stock exchange is a regulated marketplace where buyers and sellers trade shares of publicly listed companies. Think of it as a highly organized auction house that operates during specific hours and follows strict rules to ensure fair and transparent pricing.
The two largest exchanges in the world are located in the United States. Canadian investors also have access to their own major exchange. Each exchange has listing requirements — rules that companies must meet to have their shares traded there, including minimum financial thresholds and governance standards.
Modern stock exchanges are almost entirely electronic. When you place an order through a brokerage, it is routed to the exchange where matching algorithms pair buy orders with sell orders. This process happens in milliseconds.
Exchanges operate during set hours — typically 9:30 AM to 4:00 PM Eastern Time for major North American exchanges. Some also offer pre-market and after-hours trading sessions with lower liquidity. All trades are recorded and reported publicly, creating the price and volume data that investors analyze.
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