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.

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RELATED FAQS
  1. What are all of the securities markets in the U.S.A?

    There are three major U.S. financial securities markets which are: New York Stock Exchange (NYSE): NYSE is a stock exchange ... Read Answer >>
  2. What are the differences between AMEX and Nasdaq?

    While similar in purpose, the American Stock Exchange (AMEX) and the National Association of Securities Dealers Automated ... Read Answer >>
  3. Why is the Nasdaq more volatile than the NYSE?

    Learn about the stocks that are traded on the Nasdaq stock exchange, and discover the Nasdaq's relative volatility level ... Read Answer >>
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