Markets, Exchanges, Indexes, And Investments
"Markets are not exchanges, exchanges are not indexes, and indexes are not investments. Yet, these words are often interchanged in discussions about index investing. A financial market is created when there is an exchange of financial instruments. These transactions typically take place on an exchange. Securities exchanges are facilities for trading securities among investors as well as whereby public companies, governments and other entities issue and redeem financial instruments. Securities traded on exchanges include, but are not limited to, stocks, bonds, unit trusts, derivatives and pooled investment products such as limited partnerships."