Different Kinds Of Stock Markets – An Overview
There are many different stock markets in the US. The New York Stock Exchange or NYSE, the American Stock Exchange or AMEX, and the NASDAQ are the main markets that you will hear most of the time.
Basically, the markets are where companies and people would trade securities. The main arena in which the players gather to trade is the market.
The New York Stock Exchange has been around since 1792. On Wall Street in New York City is where you can find this. The largest and best-known stock exchange in the country is the NYSE. Very stringent requirements is what it has in order for companies to joint its listings. If a company wants to join the NYSE, then they must be financially strong and show signs of being an industry leader. Companies strive to belong to this market, and even pay annual fees for membership.
The firm has most likely bought a seat on the floor of the NYSE when a brokerage is describing itself as a member of the NYSE. This means that there is actually a employee on the floor of the exchange buying and selling stock. This costs well over a million dollars which means it’s an expensive investment for a firm.
Similar to the NYSE is the American Stock Exchange due to the fact that it conducts its trading on a trading floor. Traders who buy and sell securities is what the floor is filled with. Since 1921, the AMEX has been located in Manhattan. It is known as a major exchange for not only stocks, but also options. On the AMEX, you will tend to find slightly riskier and smaller stocks which will operate under the NASDAQ-AMEX Market Group, known as a subsidiary of the National Association of Security Dealers.
The National Association of Securities Dealers Automated Quotations or NASDAQ is considered as the youngest of the three major markets. It may also be the one you have heard the most about through the news. It lists just about every stock in the industry, but it is best known for listing technology companies. In fact, many major technology stocks such as Microsoft and Intel is what you will find here. It was launched in 1971 and was the first over-the-counter stock market. It links buyers and sellers via a computer network.
Brokers and dealers will market the stocks by maintaining an inventory in their own accounts. Upon receiving an order from an investor, they will then buy or sell. When it comes to the start up companies that are issuing stock in an initial public offering, you will find that it will often list on the NASDAQ.
When you are buying stock, then you need to know where you can find certain types of stock. Often specializing in slightly different types of stocks is each market.
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