Speculation Index


DEFINITION of 'Speculation Index'

An index that is derived from the ratio of trading volumes on the American Stock Exchange (AMEX) to volumes on the New York Stock Exchange (NYSE). The speculation index rationale is that since most stocks traded on the American Stock Exchange are speculative, while stocks traded on the NYSE are larger and more established, a higher ratio indicates an increasing degree of speculation, while a lower ratio indicates a decreasing amount of speculation.

BREAKING DOWN 'Speculation Index'

In 2008, the American Stock Exchange was acquired by the NYSE Euronext, which announced that the exchange would be renamed the NYSE Alternext US. The latter was renamed NYSE Amex Equities in March 2009. These changes have made stand-alone American Stock Exchange trading volumes difficult to source and track, as a result of which the speculation index has lost much of its relevance as a measure of speculative activity.

  1. Speculative Stock

    A stock with a high degree of risk. A speculative stock often ...
  2. NYSE Amex Equities

    An American stock exchange owned by NYSE Euronext. The NYSE Amex ...
  3. Speculation

    The act of trading in an asset, or conducting a financial transaction, ...
  4. American Stock Exchange - AMEX

    The third-largest stock exchange by trading volume in the United ...
  5. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  6. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
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