Definition of exchange

1. reciprocal transfer of goods or services from one entity to another.
2. market for securities or commodities, such as the New York Stock Exchange (NYSE) or the Chicago Mercantile Exchange.
3. exchange rate.

1. to give goods or services and to get goods or services of equal value in return. Generally, a transaction is a sale when money is received in return for the goods or services and is anexchange when specific property is received. Exchange is synonymous with barter.See also tax-free exchange.
2. place where securities are traded, such as the New York Stock exchange.
3. under Section 1031 of The Internal Revenue Code, like-kind property used in a trade or business or held as an investment can be exchanged tax-free. See also boot; realized gain; recognized gain; delayed (tax-free) exchange.
4. online locations where companies gather to buy and sell goods and services from one another, often via auction.

Barter: to trade goods and services with another individual or company for other goods and services of equal value.
Corporate finance: offer by a corporation to exchange one security for another. For example, a company may want holders of its convertible bonds to exchange their holdings for common stock. Or a company in financial distress may want its bondholders to exchange their bonds for stock in order to reduce or eliminate its debt load. See also swap.
Currency: trading of one currency for another. Also known as foreign exchange.
Mutual funds: process of switching from one mutual fund to another, either within one fund family or between fund families, if executed through a brokerage firm offering funds from several companies. In many cases, fund companies will not charge an additional load if the assets are kept within the same family. If one fund is sold to buy another, a taxable event has occurred, meaning that capital gains or losses have been realized, unless the trade was executed within a tax-deferred account, such as an IRA or Keogh account.
Trading: central location where securities or futures trading takes place. The New York and American Stock Exchanges are the largest centralized place to trade stocks in the United States, for example. Futures exchanges in Chicago, Kansas City, New York, and elsewhere facilitate the trading of futures contracts. See also securities and commodities exchanges.

barter agreement between two parties that involves a trade of goods or services of equal perceived value without any monetary compensation. For example, an exchange may be an agreement between two list owners to trade lists for one-time usage without a rental fee if the owners share a common target market but are not in direct competition-for example, a children's clothing manufacturer and a children's furniture manufacturer. An exchange might also be made by a magazine publisher and a book club in which book package insert space is traded for advertising space on a page in the magazine.

under section 1031 of the Internal Revenue Code, like-kind property used in a trade or business or held as an investment can be exchanged tax-free.

Example: Collins exchanges her farm worth $1,000,000, but subject to a $200,000 mortgage, for Baker's apartments worth $800,000 that are free and clear of debt.