What are the differences between AMEX and Nasdaq?

By Bob Schneider AAA
A:

While similar in purpose, the American Stock Exchange (AMEX) and the National Association of Securities Dealers Automated Quotations (Nasdaq) are also unique from one another. The AMEX is the third-largest stock exchange by trading volume in the United States. In 2008, AMEX was acquired by NYSE Euronext. The Nasdaq is another American stock exchange, also located in New York City. Nasdaq holds a higher trading volume per day than any other stock exchange in the world. Both the Nasdaq and the AMEX provide a platform for exchange where buyers and sellers meet. However, there are several differences between these two exchanges.

The Nasdaq is significantly larger than the AMEX, as noted previously. Another key difference is the method of exchange: The AMEX is auction-based, which means that the specialists are physically present at the exchange and the buying and selling of stocks is done verbally. The Nasdaq, on the other hand, is a market-maker based exchange and is completely electronic meaning specialists are not required to match trades. The two exchanges also differ in their focus. The AMEX includes innovative trades, boasting the second-largest options trading market and it helped pioneer the inclusion of exchange-traded funds. The Nasdaq focuses primarily on technology deals and corporate exchanges. (To read more about specialists and their role on the AMEX read our related article Electronic Trading: The Role of a Specialists.)

RELATED FAQS

  1. What is the difference between a stop loss order and a limit order?

    Learn how to manage losses and reduce risk in volatile markets while reviewing the differences between stop-loss orders and ...
  2. What's the difference between a capital market and the stock market?

    Learn about the differences between stock market and capital market. Identify several important stock markets and understand ...
  3. What types of items can you buy futures for?

    Learn what items futures may be purchased for, what a futures contract is and discover how the futures markets have greatly ...
  4. If I use hedging as a risk strategy, do I have to keep my eye on my portfolio all ...

    Understand the concept of hedging and learn how this key element to portfolio management can help an investor protect profits ...
RELATED TERMS
  1. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  2. Bulldog Market

    A nickname for the foreign bond market of the United Kingdom. ...
  3. Multibank Holding Company

    A company that owns or controls two or more banks. Mutlibank ...
  4. Short Put

    A type of strategy regarding a put option, which is a contract ...
  5. Wingspread

    To maximize potential returns for certain levels of risk (while ...
  6. Volatility Smile

    A u-shaped pattern that develops when an option’s implied volatility ...

You May Also Like

Related Articles
  1. Options & Futures

    Give Yourself More Options With Real ...

  2. Options & Futures

    The Future Is Now: All About Futures ...

  3. Options & Futures

    How To Protect A Short Position With ...

  4. Investing News

    Looking To Invest In U.S Start-Ups? ...

  5. Entrepreneurship

    Gazelle Recycles Smart Phones For Green ...

Trading Center