A comparison of two stock exchanges: the American Stock Exchange (AMEX) and the National Association of Securities Dealers Automated Quotations System (NASDAQ).
Written in 2007; 786 words; 8 sources; MLA; $ 28.95
Paper Summary:
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."
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