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. |
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Investopedia explains '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. |
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