You have been asked to write a report for a group of new stock brokers about the American Stock Exchange and the NASDAQ.

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American Stock Exchange (also called the Curb) is the second-largest stock exchange in the U.S., after the New York Stock Exchange (NYSE). The AMEX started as an alternative to the NYSE. It originated when brokers began meeting on the curb outside the NYSE in order to trade stocks that failed to meet the Big Board's stringent listing requirements, but the AMEX now has its own trading floor. In 1998 the parent company of the NASDAQ purchased the AMEX and combined their markets, although the two continue to operate separately. The listing rules are a little more lenient than those of the NYSE; therefore AMEX has a larger representation of stocks and bonds issued by smaller companies than the NYSE. Index and interest rate options trading also occurs on the AMEX.

New York Stock Exchange (also called the Big Board) is the oldest and largest stock exchange in the U.S.,

located on Wall Street in New York City. The NYSE is responsible for setting policy, supervising member activities, listing securities, overseeing the transfer of member seats, and evaluating applicants. It traces its origins back to 1792, when a group of brokers met under a tree at the tip of Manhattan and signed an agreement to trade securities. Unlike some of the newer exchanges, the NYSE still uses a large trading floor in order to conduct its transactions. It is here that the representatives of buyers and sellers, professionals known as brokers, meet and shout out prices at one another in order to strike a deal. This is called the open outcry system and it usually produces fair market pricing. In order to facilitate the exchange of stocks, the NYSE employs individuals called specialists who are assigned to manage the buying and selling of specific stocks and to buy those stocks...