World Of Finance

Essay by DVSDCollege, UndergraduateB+, October 2007

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The American Stock Exchange (AMEX) and the NASDAQ are examples of financial market trade organizations. They both are mediums that provide a service in the financial trading market.

The American Stock Exchange is a marketplace for many financial products such as stocks, options, exchange traded funds, and structured products. (, 2006) These products are traded through transactions of offers to sell and bids to buy. AMEX trading is facilitated by a broker who is stationed on the trading floor. These brokers perform duties as auctioneers, dealers and agents, in order to fulfill their obligations to all investors of assisting in fair and equitable trading to both buyers and sellers. (, 2006)NASDAQ on it website has made claims that they are the fastest growing stock market in the world. They also claim that they are the largest United States electronic stock market and that they trade more shares of their stocks per day than any other U.

S. market. The goal of NASDAQ is to provide a marketplace that is high in technology, reliable, fast and transparent (fair to all investors). (, 2007)There are differences between both the AMEX and NASDAQ exchanges. First the AMEX is an order driven like a continuous auction house where the specialists/ brokers helpout with the trading. (, 2006) While the NASDAQ is a dealer based competing system, where the dealers continually post bids. (, 2007)Other differences are in terms of limit orders that affect the price of a stock. AMEX brokers can not trade for future orders at the same prices. By this limitation can become temporarily non-negotiable after corporations have public announcements which can delay revisions on quotes. (, 2006) In contrast, NASDAQ dealers are not allowed to rely on limit orders of other investors. (, 2007)WorldComAccording to Standard and Poor's the...