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electronic stock market. "With approximately 3,300 companies, the NASDAQ lists more companies and, on average, trades more shares per day than any other U.S. market" (NASDAQ, 2006, n/p).
Therefore, the AMEX is a tangible physical entity, it occupies its own building and has physically designated space for trading - trading floor; has specifically designated members and an elected governing body. On the contrary, the NASDAQ, which means National Association of Securities Dealers Automated Quotation System, is a nebulous, intangible organization built up around the computerized system.
The American Stock Exchange, according to its own definition, is "an auction market where prices for a diverse array of products - stocks, options, exchange traded funds (ETFs) and structured products - are determined by public bids to buy and offers to sell". The major characteristics of the trading process at the AMEX include: centralization of the order flow on the trading floor, priority given to the public orders, and execution of the orders by price and time sequence regardless of size or source. (AMEX, 2006, n/p).
Like the AMEX, the NASDAQ operates as an auction market, but it has its own peculiarities: no physical trading floo ...