What is the difference between a financial market and a financial exchange

What is the difference between a financial market and a financial exchange Introduction: The Pillars of Finance Welcome to our exploration of the financial landscape. At its core, finance is a dynamic realm, comprising various components. Two such integral elements are financial markets and financial exchanges. While they may seem synonymous, they possess distinct characteristics and serve unique purposes. Today, we'll unravel their disparities and understand their significance. Defining the Financial Market A financial market is an expansive domain, encompassing diverse instruments, institutions, and entities. It acts as a platform for the buying and selling of financial assets, such as stocks, bonds, currencies, and commodities. In essence, it facilitates the flow of capital between individuals, corporations, and governments. Financial markets can be physical locations, like the New York Stock Exchange, or virtual spaces, such as electronic trading platforms. The Role of the Financial Exchange Within the broader financial market, we encounter financial exchanges. These are specialized platforms that provide a structured environment for trading specific financial instruments.