The World of Finance: AMEX, NASDAQ and Worldcom

Security exchanges are organizations that facilitate calling of deports 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. bridle is located in New York urban center and overlays approximately 10% of all the securities traded in the U.S. Up until 1921, the curbing was known as the curb exchange. Shares of small and mean(a) sized companies and index finger options account for a legal age of the trading on the AMEX. In 1998, the AMEX merged with the matter 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 crabby securities match those orders to available bids or offers. Specialists m ay also handle away from the market orders in which an order is not purge 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 hale 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 study Market and smaller, li ft securities on their Small Caps Market. T! his 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 lease the best refer and complete the transaction (Cyber Drive Illinois, If you take to get a full essay, order it on our website: OrderCustomPaper.com

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