Final answer:
A stock exchange is where stockbrokers trade stocks and other securities for clients. The NYSE is the oldest and largest in the U.S., while the NASDAQ represents a more modern electronic trading system.
Step-by-step explanation:
A stock exchange is an organized venue for stockbrokers and securities dealers to trade listed stocks and other securities for their clients. These exchanges provide a platform for companies to raise revenue through the sale of stocks.
Companies must pay a fee to trade on these exchanges, such as the iconic New York Stock Exchange (NYSE), which is the oldest and largest stock market in the U.S., dating back to 1792 and located at 18 Broad St. in New York City. It trades stocks for 2,800 companies of varying sizes. Another example of the modern evolution in stock exchanges is the NASDAQ, founded in 1971 as an electronic stock market. It facilitates trading for about 3,600 companies from many physical locations.