AMEX vs NASDAQ - Similarities and Differences Assignment

AMEX versus NASDAQ - Similarities and Differences - Assignment Example To begin both Amex and NASDAQ are organizations that depend on the financial exchange. Both handle significant customers and direct exchanges with a wide range of trades. Both additionally manage the purchasing and selling of stocks. As respects to the notoriety, each is broadly known and benefits from their investors.While similitudes exist, the two enterprises do have clear contrasts. The significant purpose of contrast is that Amex utilizes floor trade procedure; an authority framework with a concentrated breaking point request book while NASDAQ utilizes an electronic posting of contending vendor cites. This distinction leads on to different contrasts, for example, exchange handling time (more slow on account of Amex) and efficiency.As referenced prior the AMEX is a request driven ceaseless closeout showcase, the establishment stone of which are the market creators or â€Å"specialists†. Crafted by the authorities is to encourage constant exchanging by posting cites for the ir own record or by offering the best statements on their cutoff request book, which speak to a brought together store for limit requests to purchase or sell stocks at determined rates or better. Breaking point orders give quick liquidity and their significance on the AMEX can be decided by the way that almost 88% of the volume on AMEX emerges from exchanges which the masters don't take part for their own record. In any case, experts in the AMEX are not permitted to exchange in front of breaking point orders at similar costs so their statements for the most part mirror the cutoff request book. The outcome is incidentally stale breaking point costs (in the underlying stages) after open declarations. This moderate refreshing of breaking point requests can defer updates in the best offer and ask cites.