Exchange Legal Meaning and Definition

Here is a simplified definition of the legal term Exchange.


(Verb): To swap or trade property or services between parties where no money is given.

(Noun): The act of trading property or services without the exchange of money. In tax law, a property-for-property swap often used to defer capital gains tax until the newly acquired property is sold, also known as a "Starker" exchange.

(Noun): Also used to refer to the act of trading financial securities on a "stock exchange."