When you are beginning to invest in the stock market you are invariably going to come across the NYSE, AMEX, and the NASDAQ. If you are just beginning to get involved in the stock market you may have no idea what all of the different initials mean and how it affects your stocks in particular. This is by no means a complete listing of all the different markets that your stocks can be in.These are just some of the most common ones which are found in America.All around the world there are different markets that stocks are found in. They are all connected to each other though so what happens in one market directly affects the other markets. Besides America, one of the leading markets is in China. This market is actually opened when America's market closes and vice versa.
The NYSE (New York Stock Exchange) is the oldest stock exchange in America. Recently it merged into the NYSE Euronext which combines the traditional stock market with the European stock market. This shows just how strongly connected all of these markets are. This is also the stock market that is housed on Wall Street which has become synonymous with stocks. The start of the day for trading begins in this building where someone officially rings a bell to begin. The end is also concluded in the same way.
The majority of the stocks that you are going to come across when searching can be found being traded in this stock market. There are many publications that you are able to find online and off which will help you to better understand this market.
The AMEX (American Stock Exchange) is the third largest stock market in America. It has recently been aquired by the NYSE Euronext. As of current it is being phased out of the marketplace due to this reason. The stocks which had been represented by this market are now being represented in the NYSE so that people do not have to worry about losing what they have earned.
The NASDAQ (National Association of Securities Dealers Automated Quotations) was started back in 1971 and is the second largest market in the United States. It is first is it is measured only by the volume of the companies that it holds. It started with its screen based technologies which quickly propelled it forward in the world to become a major player in the stock market game. Many of the stocks traded on the NASDAQ have to do with technology as compared to other markets.
They keep a close watch on the economic activity in America but are not as heavily laden as the NYSE. People trust the NASDAQ because of the ability to constantly get quotes on their stocks without having to wait. Brokers are not particularly fond the NASDAQ because it believes in eliminating the spread (difference between what was bid on the stock and what the stock actually made) because that was how they were able to take their commission. This is the most commonly used index for people who do online trading.
For a company to be listed on the NASDAQ , it must have three market makers and meet minimums that have been set up by the index. These include assets, capital, public shares, and shareholders. The index has acquired PHLX (Philadelphia Exchange) which was the oldest stock exchange in America so now it has even more power behind the listings that it does.
The third major market in the United States is the S&P 500. This stands for the Standard's & Poor's Listing. These are the listing of the top 500 largest companies that are listed on the other American markets. Most of the people who follow this listing believe that if it is rising then the economic stability of America is increasing. On this list are companies who have been shown to increase their capital no matter what the situation is in America. Most of the major companies that the average person can think of are on this listing as well as some which are not as well known but continue to do well.
If a company is listed to the S&P 500 then that stock can expect to see a large rise in his performance. Investors believe that a company that is listed on this listing is better than other other companies and will want to invest his money into the company. You can purchase an index mutual fund which will be a collection of stocks from various companies that are listed on the S&P 500.
If you do enter into the stock market in America, your stock will likely fall into one of the three listings above. There are a few other stock markets which exist outside of these but they do not deal with such volume. No matter which market your stock is listed in, it will be affected by everything that happens in other markets. The world is becoming interlinked as are publicly traded stocks .