The size of the exchange?

Each exchange works quite similarly, allowing you to trade a variety of goods. In the past, it was mainly commodity trading, but now the stock exchange mainly trades various financial instruments and securities. Although all exchanges operate on a similar principle, there are different types of exchanges, which are divided, m.in others, according to the following criteria:

• market capitalization – the sum of the market value of all companies that are listed on a given stock exchange;
• Transaction range – refers to the type of asset that can be traded on a particular exchange.
• trading volume – the number of transactions, or the number of shares and other instruments that change hands over a certain period of time;
• geographical range – the area where the exchange operates and attracts investors.

In terms of geographical coverage, there are regional, national and international exchanges. Each of them has a different impact on the economy and different regulatory requirements, which translates into investment opportunities.

There is only one Warsaw Stock Exchange (WSE) in Poland, which allows trading in securities and financial instruments and is a national stock exchange. It is also worth knowing what are the largest exchanges in the world that have an international reach:

• New York Stock Exchange;
• The International Stock Exchange London;
• Tokyo stock exchange.

It should be remembered that trading on the stock exchange, regardless of its range, is possible only through the brokerage house with which the investment account will be opened. An account with a broker provides access to a specific exchange or various exchanges, including those with an international reach, and allows you to make transactions, which we are talking about in more detail in Webinar Universe.

Regional exchange

Regional exchanges tend to be smaller in terms of capitalization and trading and are a core component of local capital markets. They support small and medium-sized enterprises, enabling them to raise capital for the development of the company. Regional exchanges are characterized by a very limited geographical range and usually operate only within a specific region or even city. A perfect example are stock exchanges in small towns, which allow local entrepreneurs to issue shares and bonds, i.e. raise capital without the need to take out a loan.

The operation of a regional exchange is closely related to local legal requirements and regulations, which are usually much less stringent than those applicable to large national and international exchanges. A great advantage of such an exchange is the support for transactions of local companies, which enables intensive development of the regional economy. The most important functions of the regional exchange are:

• support for local companies by enabling them to raise capital for development;
• stimulating the local economy by attracting new investors;
• education – promoting investment culture.

An example of a regional exchange is the Boston Stock Exchange (BSE), which focuses on serving New England-based businesses in the United States.

Domestic stock exchange

At Webinar Universe , we also mention that domestic exchanges not only have a much wider reach, but also greater importance in shaping the economy than regional exchanges. It is a financial market, operating at the level of the entire country, which includes companies from various sectors of the economy. National exchanges are subject to national regulation, are well regulated and supervised by the relevant financial authorities, which increases the level of security of transactions and ensures transparent trading. The scope of operation of domestic exchanges is very wide and includes secondary trading, listing of new issues and various financial products. An example of a domestic stock exchange is the Warsaw Stock Exchange. Main functions of the domestic exchange:

• ensuring the stability of the economy – increasing market liquidity by attracting new investors from Poland and abroad;
• financial innovation – introduction of new trading technologies and financial instruments;
• support for large enterprises by enabling the acquisition of more capital.

International exchange

During the online training , we also mention that international stock exchanges are the most significant and largest financial markets in the world, where companies from various countries are listed. They are distinguished by their huge market capitalization and trading volume, making international exchanges crucial in the global financial system. The operation of such exchanges is regulated by national regulations and international standards, which allows you to maintain the security and transparency of transactions. International stock exchanges attract investors from all over the world and give you the opportunity to trade shares of the largest companies.

The scope of operation is also correspondingly larger, because this type of exchange allows you to trade shares and bonds, as well as more advanced financial instruments, such as ETFs or derivatives (options, futures, swaps, etc.). The most important functions of international exchanges are:

• globalization of the financial market through access to global capital markets;
• Supporting and providing capital raising opportunities and international expansion for the largest companies.
• trading complex financial products.

An example of an international stock exchange is the New York Stock Exchange (NYSE).

Exchanges of different reach perform different functions, creating a global financial market and supporting businesses at different levels. All of them are subject to appropriate legal regulations, which guarantees the security of transactions. Exchanges, regardless of their size and scope, operate on similar principles, but on a smaller scale. Regional exchanges mainly support smaller entrepreneurs and the local economy. Domestic exchanges help stabilize the country's economy and support large entrepreneurs. International exchanges, on the other hand, offer large-scale trading, enabling the globalization of the financial market.