What is a trading venue?

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter18: Long-term Debt Financing
Section: Chapter Questions
Problem 5BIC
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What is a trading venue?

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Step 1

Answer:

Trading facility is nothing but a facility where the financial instruments of many buyers and sellers are traded. It requires the licensed persons to exchange the financial instruments under the contract.

Step 2

Usually, the most of venues are electronic-based where a dealer is permitted to buy and sell shares, and major investment banking and regulatory bodies accept them.

In case of NYSE the venue would be physical and it is having a physical floor such with NASDAQ which is in service fully in electronic form.

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