Understanding the Role of Stock Exchanges

In the world of equity investments, stock exchanges are pivotal in providing a platform for trading shares of publicly listed companies. There are various stock exchanges around the world, each with its own unique features and regulatory structure. For example, the New York Stock Exchange (NYSE) and the NASDAQ are two prominent exchanges in the United States. Understanding the roles and characteristics of these exchanges can significantly impact investment strategies.

Which of the following statements about stock exchanges is TRUE?