In the US, there are many different stock markets. Most of the time, the New York Stock Exchange (NYSE), the American Stock Exchange (AMEX), and the NASDAQ are the main markets that people talk about.
People and businesses trade stocks, bonds, and other securities on the markets. The market is where the traders meet to do business.
Since 1792, the New York Stock Exchange has been around. It is on Wall Street in the city of New York. The NYSE is the country's biggest and most well-known stock exchange. It also has strict rules for companies that want to be on its lists. To join the NYSE, a company must be financially stable and show signs of being a leader in its field. Companies try to join this market and even pay yearly fees to do so.
When a brokerage says it is a member of the NYSE, it means that it has bought a place on the NYSE floor. This means that there is a person buying and selling stocks on the floor of the exchange. It will cost a company well over a million dollars to make this investment.
Like the NYSE, the American Stock Exchange has a trading floor where people can buy and sell stocks. The floor is full of people who buy and sell stocks and bonds. Since 1921, the AMEX has been in New York City. It is a well-known major exchange for both stocks and options. On the AMEX, which is run by the NASDAQ-AMEX Market Group, a branch of the National Association of Security Dealers, you are more likely to find smaller, riskier stocks.
The National Association of Securities Dealers Automated Quotations (NASDAQ) is the youngest of the three major markets. It could also be the one you've heard about the most in the news. It lists almost every stock in the market, but technology companies are what it is best known for. In fact, it is where big tech companies like Microsoft and Intel have their stocks. It started in 1971 and was the first stock market that didn't have to be run by a company. It connects buyers and sellers through a network of computers.
Brokers and dealers will sell the stocks by keeping a stockpile of them in their own accounts. When an investor gives them an order to buy or sell, they will do so. Most start-up companies that are selling stock to the public for the first time will list on the NASDAQ.
When you want to buy stocks, it's important to know where to find certain types. Most of the time, each market focuses on a little bit different kinds of stocks.
