An exchange is an organized securities market

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Maintaining a normal level of functioning of the economy directly depends on the development of the market infrastructure - a set of economic institutions that are responsible for the continuity of its mechanism. Their purpose is to distribute and move financial and commodity flows. Exchange transactions are carried out within some organizational forms, such as shops, bazaars and fairs, and the movement of money contributes to the emergence of specialized institutions such as banks.

Exchange is the most developed form of market infrastructure. With its help, regular wholesale trade in goods of the same type, as well as foreign currency and securities, is carried out. This contributed to its division into different types:

1. A currency exchange is a place where transactions for the purchase and sale of currencies are made. Each of them has a certain individual work schedule, which affects the actions of traders who have to take this into account, but they do not always have the opportunity to respond in time to changes in monetary situations. The foreign exchange market is a place for trading that does not have time and territorial boundaries. It can operate around the clock,excluding weekends and holidays. Currency trading can become both a main occupation and a side job.

2. A stock exchange is an organization whose activity is to ensure the required conditions for the normal circulation of securities, the dissemination of information about them and the determination of their value on the market. It is designed to create an organizational structure, carry out transactions with its values, for a clear mechanism for the conclusion and control system for transactions with a high level of reliability.

3. A commodity exchange is a sphere created as an intermediary that provides its services in the process of concluding purchase and sale transactions. In addition, it is responsible for regulating operations and supporting situations. The Commodity Exchange collects and publishes information on the cost and factors of production that affect pricing on a regular basis.

4. The labor exchange is an institution that provides intermediary services in the employment process (both employers and hired workers). It helps to quickly find a good place of employment in the speci alty or fill vacant vacancies. The labor exchange has a huge base of hired personnel and vacancies for employment. She studies the labor market and provides free advice on the professional interest of employers.

Due to the growing financial crisis, previously unclaimed institutions appeared:

- barter exchange is a sphere of exchange of goods for goodswithout using money;

- deposit exchange, where it is possible to exchange a deposit in a problem bank for funds of another participant.

The structure of the market continues to improve and develop, so very soon we will be able to get acquainted with new types of exchanges.