A comparison of two stock exchanges: the American Stock Exchange (AMEX) and the National Association of Securities Dealers Automated Quotations System (NASDAQ).
Abstract This paper compares the various features of the American Stock Exchange (AMEX) and National Association of Securities Dealers Automated Quotations System (NASDAQ) stock exchanges, which are both very active exchanges. It analyzes the operational differences between the two and also presents the positive, as well as negative aspects of both.
Table of Contents:
Amex (American Stock Exchange)
NASDAQ (National Association of Securities Dealers Automated Quotations System)
Similarities
Differences
The Worldcom Scandal
From the Paper "In contrast to the AMEX market, the NASDAQ employs an electronic listing of competing dealer quotes in which each dealer continually posts firm bids and ask quotes on an electronic screen. [2] There is no central limit order book on NASDAQ, although limit orders may be left with individual broker-dealers. However limit orders on NASDAQ do not drive the posted quotes since dealers are not required to consider limit orders in setting their quotes. Also, the effect of dealer competition is reduced by rules allowing directed order flow to less competitive dealers who agree to meet the best quotes. NASDAQ dealers can not rely on the limit orders of other investors and must post firm bid and ask quotes for minimum 1000 shares. Since NASDAQ dealers have monetary incentive to revise their quotes immediately following public announcements, even in the absence of trades."
This paper examines to what extent security prices are a good estimate of "Intrinsic Value" on modern developed capital markets, based on a philosophy of analyst Eugene Fama.
Abstract A paper which discusses Fama's philosophy, which concedes that in a efficient market the price of securities is a good estimate of the intrinsic value of the capital market, that information should flow freely and that the price of the securities should reflect the information that is available. In addition, the participants in the market should make decisions about the based on the information that they already have. The paper defines Intrinsic value, capital markets and securities, the types of securities that exist and current events involving the Enron Corporation and its collapse to determine whether or not we indeed have an efficient market in which securities are a good estimate of the intrinsic value of the modern day capital market.
From the Paper "With all this information being understood lets discuss whether or not Fama's beliefs are valid in the modern capital market. First of all let's examine whether or not by definition today's capital markets are efficient. Fama believes that an efficient market is one in which there is an almost free flow of current information. The efficiency of our current market is questionable at best. While Enron was sinking its shareholders were not given current accurate information pertaining to the financial state of the company. Another aspect of this inefficiency is that the market will make decisions based on what has already occurred or what may occur in the future. "
Tags: NASDAQ, New, York, Stock, Exchange, NYSE, American, Stock, Exchange, AMEX, virtual, company
Abstract Until quite recently, American Express (AMEX) faced little competition of importance due to a marked shortage of firms that could offer guaranteed financial services in numerous locations across the world. However, the revolution in communications presented by cybertechnology has forced a move away from the assumption of old that had to do with the near monopoly on the part of American Express. Businesses and individual consumers now have little difficulty performing various financial tasks of their own accord, employing the Internet or one or another of dozens of financial service firms that have joined the field in the last decade or so. Later pages of this paper emphasize ideas presented in Tapscott's "The Digital Economy", which pertain to the lack of predictability that is presented by the new economy and its affiliations to both cybertechnology and globalization. (1996) In good measure, the opinion presented here is related to the possibility that the world economy and inherent business practices may not be as revolutionized as contemporary phenomena might suggest.
Abstract This paper explains that many of the corporate requirements came about because the Amex, the NASDAQ and the NYSE wanted to ensure the high quality management of the Board of Director committees. The paper then discusses how board committees are structured, which ones are the most important or significant and which ones are the most likely to be needed based on the type of company. The paper examines several types of board committees, including the audit, compensation, nominating, and other committees. The paper also examines the functions of members of non-profit Board of Directors.
Table of Contents:
Legal/Statutory Basis and Terms of Self-Regulation of Board Committees in the USA
The Board Committees in the USA
Audit Committees in the USA
Compensation Committees in the USA
Nominating Committees in the USA
Other Board Committees in the USA
Advantages, Disadvantages, and Problems of Board Committees in the USA
From the Paper "The standards are designed to show not only that the particular exchange is high quality, but also that it is safe and can be trusted . There is some difficulty with this right now because of the various scandals that took place in accounting firms such as Enron, and many of the changes that are taking place has to do with just such problems. Currently, the corporate governance requirements are a mixture of good governance and competition."
