Definition of Exchange
To barter; to swap. To part with, give or transfer for an equivalent. Kessler v. United States, C.C.A.Pa., 124 F.2d 152, 154. Act of giving or taking one thing for another. United States v. Paine, D.C. Mass., 31 F.Supp. 898, 900; Kessler v. United States, C.C.A.Pa., 124 F.2d 152, 154. Contract by terms of which specific property is given in consideration of the receipt of property other than money. Capps v. Mines Service, 175 Or. 248, 152 P.2d 414, 416. Mutual grant of equal interests, the one in consideration of the other. Hale v. Helvering, 66 App.D.C. 242, 85 F.2d 819, 821, 822. Mutual transfer of property other than for money although one of parties may pay a sum of money in addition to property. Transaction in which one piece of property, usually something other than money or its equivalent, is given in return for another piece of property. Hadley Falls Trust Co. v. United States, C.C.A.Mass., 110 F.2d 887, 891. Transfer of property for other property. Helvering v. Nebraska Bridge Supply & Lumber Co., C.C.A.Ark., 115 F.2d 288, 290. Transfer of property for property or some value other than money. Burger-Phillips Co. v. Commissioner of Internal Revenue, C.C.A.Ala., 126 F.2d 934, 936, Transfers of enduring interests and not such as must immediately be reconveyed in fulfillment of preconceived plan. Morgan v. Helvering, C.C.A.N.Y., 117 F.2d 334, 336. The criterion in determining whether a transaction is a sale or an exchange is whether there is a determination of value of things exchanged, and if no price is set for either property it is an “exchange”. Gruver v. Commissioner of Internal Revenue, C.C.A.D.C., 142 F.2d 363, 366. The mutual transfers must be in kind, and any transaction into which money enters, either as the consideration or as a basis of measure is excluded. Hoovel v. State, 125 Tex.Cr.R. 545, 69 S.W.2d 104, 108; Trenton Cotton Oil Co. v. C. I. R., C.C.A.Tenn., 147 F.2d 33, 36. Reciprocal transfers. Helvering v. William Flaccus Oak Leather Co., 313 U.S. 247, 61 S.Ct. 878, 880, 85 L.Ed. 1310; Harwick v. Commissioner of Internal Revenue, C.C.A.Minn., 133 F.2d 732, 737.
Commerce or trade in goods, currency, or commercial paper.
Any organization, association, or group of persons incorporated or not, which constitutes, maintains, or provides a marketplace or facilities for bringing together purchasers and sellers of securities, and includes the marketplace and facilities maintained by such an exchange. A major stock and bond exchange is the New York Stock Exchange. Similar exchanges exist for the trading of commodities, e.g. New York Commodities Exchange; Minneapolis Grain Exchange; Chicago Board of Trade. Trading in securities is controlled by the Securities and Exchange Commission, trading in commodities by the Commodity Futures Trading Commission.
For Arbitration of exchange; Dry exchange; First of exchange, and Owelty of exchange, see those titles. For “Bill of exchange,” see Bill. See also Barter.
Commercial law. A negotiation by which one person transfers to another funds which he has in a certain place, either at a price agreed upon or which is fixed by commercial usage. The process of settling accounts or debts between parties residing at a distance from each other, without the intervention of money, by exchanging orders or drafts, called bills of exchange. The payment of debts in different places by an exchange or transfer of credits. The profit which arises from a maritime loan, when such profit is a percentage on the money lent, considering it in the light of money lent in one place to be returned in another, with a difference in amount in the sum borrowed and that paid, arising from the difference of time and place.
Conveyancing. A mutual grant of equal interests (in lands or tenements), the one in consideration of the other.
Like kind exchange. See Like-kind exchange.
Nontaxable exchange. Exists where property is transferred to a corporation in exchange for stock or securities in corporation and where transferors immediately after exchange are in control of corporation through ownership of 80 per cent of all other classes of stock of corporation. Commissioner of Internal Revenue v. Cement Investors, C.C.A.C0I0., 122 F.2d 380, 383.
That's the definition of Exchange in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.