Stock exchanges are organized marketplaces where publicly traded securities, primarily stocks, are bought and sold. They serve as the central nervous system of the equity market, providing a regulated and transparent environment for transactions. The primary role of a stock exchange is to facilitate capital formation by enabling companies to raise funds through initial public offerings (IPOs) and subsequent offerings, allowing them to invest in growth and innovation. For investors, exchanges offer liquidity, meaning they can easily buy or sell their shares at prevailing market prices, and price discovery, where the interplay of supply and demand determines the fair value of a company’s stock. Major exchanges like the New York Stock Exchange (NYSE) and NASDAQ operate under strict rules and regulations designed to ensure fair trading practices, protect investors, and maintain market integrity. They provide crucial infrastructure, including electronic trading systems and clearinghouses, to ensure the smooth and efficient execution and settlement of trades, making them indispensable components of the global financial architecture.