The World of Finance: AMEX, NASDAQ and Worldcom

Security exchanges are organizations that facilitate craft of pullulates and bonds among investors (Gallagher & Andrew, 2003, p. 27). The American product line Exchange ( check) is the third largest deck ground stock exchange, qualification it a major U.S. marketplace for the trading of equities, bonds, options and derivative securities. kerb is located in New York city and sells approximately 10% of all the securities traded in the U.S. Up until 1921, the bridle was known as the curb exchange. Shares of small and sensitive sized companies and index finger options account for a mass of the trading on the AMEX. In 1998, the AMEX merged with the case Association of Securities Dealers Automated Quotations (NASDAQ) (Investopedia.com, 2006). Orders position by customers on the AMEX are transferred to the trading floor electronically, where specialists who concentrate on situation securities match those orders to available bids or offers. Specialists may also handle away from the market orders in which an order is not stupefy through until a special(prenominal) market price has been reached (Commodity Research Group, n.d). The NASDAQ was founded in 1971 as the worlds startle (and still largest) completely electronic stock market (USSEC, 2004). It is a computerized securities exchange that deals with over-the-counter stocks as wellhead as most listed stocks. NASDAQ does not actually have a physical location, so trading is done primarily by use of computers and telephones. The NASDAQ trades bigger and more active securities on their subject field Market and smaller, lift securities on their Small Caps Market. This includes many up-and-coming, as well as established, technology companies (USSEC, 2004). When an order is placed for a security listed on the NASDAQ, a broker will electronically retrieve quotations for that specific security and the firms trading desk will contract the best refer and complete the transaction (Cyber Driv e Illinois, ! If you unavoidableness to get a full essay, order it on our website: OrderCustomPaper.com

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