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NYSE Stock Exchange Description
NYSE Stock Exchange History
The New York
Stock Exchange traces its origins to a founding agreement
in 1792. The NYSE registered as a national securities exchange
with the U.S. Securities and Exchange Commission on October
1, 1934. The Governing Committee was the primary governing body
until 1938, at which time The Exchange hired its first paid
president and created a thirty-three member Board of
Governors. The Board included Exchange members, non-member
partners from both New York and out-of-town firms, as well as
public representatives.
NYSE Stock Exchange Board of
Directors
In 1971 The Exchange was incorporated as a not-for-profit corporation. In
1972 the members voted to replace the Board of Governors with a twenty-five member Board
of Directors, comprised of a Chairman and CEO, twelve representatives of the public,
and twelve representatives from the securities industry.
Subject to the approval of the Board, the Chairman may appoint a
President, who would serve as a director. Additionally, at the Board's discretion, they may
elect an Executive Vice Chairman, who would also serve as a director.
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The NASDAQ Exchange
As the world's largest electronic stock market, NASDAQ is
not limited to one central trading location. Rather, trading is executed through NASDAQ's sophisticated
computer and telecommunications network, which transmits real-time quote and trade data to more
than 1.3 million users in 83 countries. Without size limitations or geographical boundaries, NASDAQ's
"open architecture" market structure allows a virtually unlimited number of participants to trade
in a company's stock.
Today,NASDAQ
lists the securities of nearly 4,100 of the world's leading companies and each year,
continues to help hundreds of companies successfully make the transition to public ownership.
Trading on
NASDAQ is not limited to any fixed number of
participants. This allows a large number of firms with widely different business models and trading
technologies to connect to the NASDAQ network and compete on an equal basis. Rather than forcing
investors to go through a single financial firm to buy or sell stocks, NASDAQ links up a variety of
competitors and lets participants choose with whom they are going to trade. All firms trading NASDAQ
stocks must be certified with the Securities and Exchange Commission (SEC) and registered with NASDAQ
and NASDAQ Regulation'. Following are examples of the kinds of firms trading NASDAQ stocks:
Through its unique framework of
multiple market participants, NASDAQ provides listed companies' securities with ready access to
investors, visibility in the marketplace, and market conditions that promote immediate and continuous trading:
Liquidity Liquidity is best defined as the ease with which
stocks can be bought and sold in the market. By encouraging trading among a virtually unlimited
number of market participants, NASDAQ offers an environment that facilitates greater liquidity.
Depth of Market
Depth of market refers to the total amount of money market makers have invested in a single
security and is related to the number of market participants trading in the security. However,
even a few market participants can provide abundant depth of market by committing to buy or
sell large quantities of a security. Knowing there is depth of market can reassure investors
of a stock's marketability, especially during periods of heavy trading volume.
Transparency
Transparency, the ability to view investors' buy
and sell orders at different price levels, is crucial to the decision-making process in
securities trading. NASDAQ's open market structure offers a level of transparency not
found on other major U.S. markets. On NASDAQ, all bid and ask quotations in a given security
are broadcast over the network. All NASDAQ market participants — regardless of whether they
are professional traders — can see the same information.
Price Efficiency
In securities trading, as in most industries, competition is one of the most
important factors in creating price efficiencies. The aggressive competition for
orders fostered among NASDAQ's market participants helps to ensure that
investors receive the best prices for the securities they trade.
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NASDAQ is building the world's first truly global stock market — digital and
Internet-accessible, open to anyone anywhere in the world, 24 hours a day. NASDAQ has already broken new
ground in Europe, Hong Kong, and Canada , with additional plans for Asia, Latin America, and the
Middle East. By reaching out around the globe, NASDAQ is creating new links to additional capital
and an even broader pool of investors.
AMEX Stock Exchange Description
The alliance of technology and people is a hallmark of auction market trading, and the
AMEX has
been a pioneer in market innovation for nearly a century.
Today at the
American Stock
Exchange, specialists, traders and brokers use the world's most
sophisticated, advanced technology to enhance trading efficiency and
reliability for the investing public.
AMEX technology improves customer service for all of the auction
market participants each step of the way. For listed companies and their
investors, our state-of-the-art trading ensures trading fairness.
Member firms receive instantaneous order processing and reconciliation. Electronic display books greatly
assist AMEX Specialists in maintaining efficient and liquid
markets, resulting in narrower spreads for customers.
AMEX Stock Exchange Traded Funds (ETFs)
The American Stock Exchange's Exchange Traded Funds (ETFs)
Marketplace includes ETFs (Exchange Traded Funds) and
iShares such as, DIA (Nasdaq-100 Index Tracking Stock, QUBES),
DIA (DIAMONDS), and SPY (Select Sector SPDRs). Listed and traded
in the Marketplace is an entire family of ETFs – index-based
investment products that let you buy or sell shares of entire
portfolios of stock in a single security. Pioneered by the Amex,
these unique financial products combine the opportunities of
indexing with the advantages of stock trading.
With ETFs based on broad-market, sector and international
indexes, you have a wide range of investment opportunities. You
have the ability to establish long-term investments in the
market performance of the leading companies in the leading
industries in the United States, or you can custom tailor asset
allocations using a range of ETFs (Exchange Traded Funds) to
fit your particular investment needs or goals. You can hold
ETFs based on a broad-market index as a core investment, for
example, then use additional ETFs to increase your exposure
in sector and/or international index performance.
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AMEX Stock Exchange History
In 1995, the AMEX became the
first U.S. stock market to
maintain a presence on the world
wide web, offering a site rich
with comprehensive data on our
listed companies, options,
derivatives and capital markets
products. We link, the
exclusive, automated service for
our listed companies, offers
potential investors and
shareholders a range of
information on every AMEX stock.
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