Simply, stock exchanges are electronic marketplaces where stock buyers connect with stock sellers. Think of it like Facebook Marketplace, although you're buying named products (stock from companies), they’re being bought and sold between you and other people online.

Whilst most stocks are traded through a broker or brokerage app - your middle man who makes sure all is done correctly - understanding the relationship between exchanges and the companies that trade on them will help with your overall understanding of investing. 

Now for the technical stuff. Stock exchanges are the place different financial items like equities, commodities, and bonds are traded. They act as a common ground where corporations and governments can get together with investors to ensure there is adequate liquidity in the market - i.e. there are plenty of sellers and buyers to allow trades to be processed without delay.

Stocks can be traded on one or more exchanges like the New York Stock Exchange (NYSE) or Australian Securities Exchange (ASX), which each have their own various requirements designed to protect investors.

^{Investing involves risk. You aren't guaranteed to make money, and you might lose the money you start with.
Douugh Australia Pty Ltd ABN 76 617 000 138 operates under Douugh Australia Pty Ltd AFS License No. 500063. Although we endeavour to ensure the accuracy of information we provide, we do not accept responsibility of liability for any errors or from any loss from its use. Any information provided is general advice only and has been prepared without considering your objectives, financial situation or needs. We don't provide personalised advice or recommendations. Before making any investment decision you should consider whether it is appropriate for your situation and seek appropriate taxation and legal advice. For more details, see our FSG, Terms of Service and other disclosures.}