Securities Exchange

Definition ∞ A securities exchange is a regulated marketplace where financial instruments such as stocks, bonds, and derivatives are bought and sold. These exchanges provide a centralized platform for trading, ensuring transparency, fair pricing, and investor protection. They facilitate capital formation and provide liquidity for publicly traded companies. Strict rules govern participant conduct and transaction reporting.
Context ∞ The classification of digital assets as securities or commodities by regulatory bodies is a recurring theme in crypto news, directly impacting how they are traded. If deemed a security, a digital asset typically falls under the purview of securities exchanges, requiring specific licensing and compliance. This regulatory ambiguity creates significant debate and influences where and how various cryptocurrencies can be offered to investors.