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Glossary

What is Stock exchange?

A stock exchange is a marketplace where people buy and sell shares of companies.

The simple explanation

The two biggest in the United States are the New York Stock Exchange and the Nasdaq. A company lists its shares on one of them so the public can trade. Regular trading runs from 9:30 AM to 4 PM Eastern time on weekdays.

An example

Tesla shares trade on the Nasdaq, while Coca Cola shares trade on the New York Stock Exchange.

Why it matters

The exchange sets the hours and rules for when a stock can be traded.

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Related terms

Educational information, not financial advice.