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Exchange

Stock Exchange

A place, whether physical or electronic, where stocks, bonds, and/or derivatives in listed companies are bought and sold. A stock exchange may be a private company, a non-profit, or a publicly-traded company (some exchanges have shares that trade on their own floors). A stock exchange provides a regulated place where brokers and companies may meet in order to make investments on neutral ground. The concept traces its roots back to medieval France and the Low Countries, where agricultural goods were traded for cash or debt. Most countries have a main exchange and many also have smaller, regional exchanges. A stock exchange is also called a bourse or simply an exchange.

exchange


exchange

See swap.

Exchange.

Traditionally, an exchange has been a physical location for trading securities. Trading is handled, at least in part, by an open outcry or dual auction system.

Two examples in the United States are the New York Stock Exchange (NYSE), which has the largest trading floor in the world, and the Chicago Board Options Exchange (CBOE).

However, the definition is evolving. Traditional exchanges handle an increasing number of trades electronically, off the floor. Nasdaq and other totally electronic securities markets, without trading floors, have exchange status.

As a result, the terms exchange and market are being used interchangeably to mean any environment in which listed products are traded.

The term exchange also refers to the act of moving assets from one fund to another in the same fund family or from one variable annuity subaccount to another offered through the same contract.

exchange

see MARKET, BARTER.

exchange

  1. 1the transfer of the right to own or use goods and services. Exchange is necessary in specialized economies (see SPECIALIZATION). In simpler specialized economies, exchange can take the form of BARTER. In more complex specialized economies exchange is undertaken through MARKETS, where the right to own or use goods and services is bought and sold. See TRANSACTION.
  2. the means of financing the purchase of goods and services in a market. See MONEY, FOREIGN EXCHANGE.

exchange

Parties may exchange like-kind properties and not pay any income taxes at the time of the exchange but, instead, defer them until the later sale of the exchanged property. See 1031 exchange.

Exchange

A transfer of property for other property or services. Some exchanges produce currently taxable income while others can be structured so as to defer any tax liability.
References in periodicals archive ?
1031, which requires exchanging partners to "hold" both the replacement property and the relinquished property for "productive use in a trade or business or for investment.
In another tax planning strategy, the former partners of a liquidated partnership hold their relinquished property tenancy-in-common interests for an extended period before exchanging them for the replacement property.
2002-22, the IRS will not issue a favorable ruling when the exchanging tenants-in-common previously held their property interests through a partnership.
1031 treatment, became the replacement property had not been held by the exchanging party for a permissible use.
Attributing partnership's holding to original exchanging party: Clients who immediately contribute interests in the replacement property to a partnership after an exchange might rely on Magneson (44) to attribute the partnership's holding to themselves.
No backdating of identification documents: As some exchanging clients find themselves approaching the 45-day deadline without having yet identified the replacement property, they may be tempted to "backdate" identification documents.
If the transferred corporation disposed of "substantially all" of its assets (as that phrase is defined for purposes of section 368(a)(1)(C)) during the term of the GRA, then the transferee corporation would be considered to have disposed of the transferred stock, thereby triggering gain to the exchanging shareholder under the GRA.
A special rule would apply where the transferred corporation was domestic and the exchanging shareholder was a domestic corporation that owned at least 80 percent (by vote and value) of the transferred corporation's stock.
33) The section 1248 amount is the amount that would be treated as a dividend to the exchanging shareholder under section 1248 had the stock been exchanged in a taxable sale.
If the section 1248 amount is not required to be included in income pursuant to this rule (because the stock received is stock in a CFC with respect to which the exchanging shareholder is a U.
The exchanging shareholder must recognize the gain it realizes on the exchange unless it includes in income (as a dividend) its all earnings and profits amount.