Which investment type typically does not trade on formal exchanges?

Real estate assets typically do not trade on formal exchanges in the same manner as publicly traded companies or commodities. Unlike stocks and bonds, which can be bought and sold through stock exchanges, real estate transactions generally occur in a more localized and less formalized setting. Real estate investments often involve direct sales between buyers and sellers, or through real estate brokers, rather than through a centralized marketplace.

This lack of a formal exchange means that real estate investments can also be subject to various local regulations, property-specific factors, and individual buyer-seller conditions, which further differentiates them from assets that are traded on formal exchanges. Hence, the nature of real estate as an investment type aligns with the characteristic of not being traded on formal exchanges.