American Stock Exchange (AMEX) vs. the National Association of Securities Dealers Automated Quotations (Nasdaq)

The American Stock Exchange (AMEX) and the National Association of Securities Dealers Automated Quotations (Nasdaq) are New York-based exchanges, each offering slightly different options for buyers and sellers.

American Stock Exchange (AMEX)

The AMEX is the third-largest stock exchange by trading volume in the United States. In 2008, AMEX was acquired by NYSE Euronext.

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 AMEX includes innovative trades, boasting the second-largest options trading market and it helped pioneer the inclusion of exchange-traded funds.

Key Takeaways

  • The Nasdaq and Amex are both located in New York City, New York.
  • Nasdaq holds a higher trading volume per day than any other stock exchange in the world.
  • 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.

National Association of Securities Dealers Automated Quotations (Nasdaq)

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 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.)