Historical Evolution of the Major Stock Markets

Those listed on the AMEX are generally mid-sized companies and also limit trade to investor/investor interactions (Mack, 1995, 70). Those that trade during the NYSE and AMEX supply their personal liquidity. NASDAQ plays by a slightly a variety of set of rules. Dealers or specialists authorized to trade stock use real-time stock quotations obtained from other sources, and market stock by phone or more than pc's (Hoover's, 1995, 792). In NASDAQ kind markets dealers offer the liquidity and are paid the difference in between the bid and the offer, referred to as the "spread" (NYSE, Rule 92). Because of the lag time in using electronics to receive bids, the dealer stands to profit or lose depending over a speed of transactions (Hoover's, 1995, 792).

Stocks listed on a NASDAQ tend to represent technologically oriented companies. Important Differences Between NASDAQ and also the Other ExchangesThe most important differences among the NYSE, AMEX and NASDAQ exchanges seem to deal with entry and efficiency. Even though corporations that list over a NYSE and AMEX tend to become older, a lot more established companies, firms that list over a NASDAQ have a tendency being newer, cutting edge technological firms. The NASDAQ has a smaller amount expensive and less stringent needs for listing, though the same cannot be stated from the NYSE.

To list over a NYSE a business have to have earnings of $2.5 million for ones contemporary year; it must have world wide web tangible assets of at least $18 million; the marketplace va The differences among the major stock exchanges lie in their reputations historically, how stocks are acquired, and how profits are made. Little can also be done to even out the capital accrued by reputation. However, it might be worthwhile to investigate a process wherever pegging, or point spread had been tied to a certain significance not artificially created by a private enterprise.

Yet a dilemma with this sort of a method lies in the reality that the NYSE has a status for blue chip stocks and also the NASDAQ for cutting edge companies. But if the object of the stock industry is some type of public offering then a fair techniques of comparison must be available. If liquidity determines who buys stocks (see chart) then a techniques of comparison would be useful.

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