US Stock Market

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The US Stock Market is undoubtedly the largest in the world with the presence of global players striving to attain newer heights. The US Stock Market includes the most Fortune-500 companies that go to explain its status in the World Stock Market scenario.

The US Stock Market mainly consists of the three major Stock Exchanges which play a great part in keeping the world economy stable, as stated below:

  • New York Stock Exchange (NYSE) – Established in 1792, this is the most profitable stock exchange in the US Stock Market with the highest market capitalization in the world. It also comes in a close second in the terms of companies listed for trading.

    The “Big Board” as it is popularly known, the NYSE is owned and controlled by NYSE Euronext formed through the merger of the NYSE Group with the pan-European Stock Exchange Euronext N.V. and Archipelago Holdings, a completely electronic Stock Exchange. NYA, the composite Stock Exchange Index of NYSE was developed in the 1960s.

  • National Association of Securities Dealers Automated Quotations system or NASDAQ – an over-the-counter (OTC) or virtual market – the first of its kind in the world, presently held and managed by the Nasdaq Stock Market, Inc. This Stock Exchange belonging to the US Stock Market was established by the National Association of Securities Dealers (NASD) in 1971.

    Its Electronic Communication Networks (ECNs) structure enhances competition by permitting multiple market participants to trade simultaneously. Small market orders rather than being overlooked are worked on automatically even under “turbulent” market conditions with the assistance of the Small Order Execution System (SOES).

    Two of the exclusive NASDAQ Stock Indexes are :

  • NASDAQ-100
  • NASDAQ Biotechnology Index
  • American Stock Exchange (AMEX) – presently dealing only in options and Exchange-traded funds, this component of the US Stock Market also trades small to mid-size stocks. Prior to 1929 (when it got its present name) this Exchange was called the New York Curb Exchange. After being acquired by the NASD which controls the NASDAQ IN 1998, The AMEX started functioning on its own once again in 2004.

    Inter@ctive Week Internet Index is the AMEX Stock Index for Internet company stocks, whereas the Intellidexes are unique indices developed by AMEX.

    For more information on the US Stock Market log on to investopedia.com,about.com

    They are:

  • Put Through Trading or PT
  • Automatic Order Matching Trading or AOMPut Through Trading: This trading system works in a direct way. The seller advertises the price of the share he wants to sell. The clients or the brokers then negotiate the price directly with the seller and the negotiated price can be lesser than the the price that was advertised. The seller then can let the ASSET know the details of the transactions for records.
    Automatic Order Matching Trading: This process is an automatic process which mainly depends on the basis of price,then the time of bidding. The best bids are given preference and are grouped together. Then the bidder who had made the bid first gets his shares. This is a computerized method that works mechanically.

    To know more about US Stock Market one can go to answers.com, about.com etc.

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