Function of a Stock Exchange

In the context of stock exchanges, it is important to understand their roles and functions in the financial system. A stock exchange is primarily a marketplace where securities, such as stocks and bonds, are bought and sold. One well-known stock exchange is the New York Stock Exchange (NYSE).

The rules and regulations governing stock exchanges vary from region to region, and they are critical in maintaining the integrity of financial markets. These exchanges also provide a platform for price discovery and facilitate liquidity for investors by bringing together buyers and sellers.

Which of the following statements correctly describes a primary function of a stock exchange?