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 are the Basel III rules, and how does it impact my bank investments?

    Learn about Basel III rules and how they impact investors in the banking sector. They have made banks less procyclical, forcing ...
  2. What options strategies are best suited for investing in the aerospace sector?

    Learn how investors profit from volatility in the aerospace sector by employing options strategies, which include the long ...
  3. What options strategies are best suited for investing in the Internet sector?

    Learn how two popular options strategies, the long straddle and the long strangle, enable investors to make money on the ...
  4. How many attempts at the Series 7 exam are permitted?

    The National Association of Securities Dealers (NASD) has not placed any limits on the number of times you can attempt to ...
RELATED TERMS
  1. Catastrophe Equity Put (CatEPut)

    Catastrophe equity puts are used to ensure that insurance companies ...
  2. Open Trade Equity (OTE)

    Open trade equity (OTE) is the equity in an open futures contract.
  3. Market Value

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

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

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

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

You May Also Like

Related Articles
  1. Mutual Funds & ETFs

    Is Amazon a Prime Pick for Your Portfolio?

  2. Investing

    Can Apple Stay on Top Forever?

  3. Options & Futures

    Why Is Best Buy Stock So Volatile?

  4. Trading Strategies

    A Guide Of Option Trading Strategies ...

  5. Investing

    Unlocking The P/E Ratio For Apple

Trading Center