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 various trades. Both likewise manage the purchasing and selling of stocks. As respects to the notoriety, each is broadly known and profits by their investors.While likenesses exist, the two organizations do have clear contrasts. The significant purpose of contrast is that Amex utilizes floor trade technique; a pro framework with an incorporated breaking point request book while NASDAQ utilizes an electronic posting of contending seller cites. This distinction leads on to different contrasts, for example, exchange preparing time (more slow on account of Amex) and efficiency.As referenced prior the AMEX is a request driven consistent closeout advertise, the establishment stone of which are the market creators or â€Å"specialists†. Crafted by the masters is to encourage ceaseless exchanging by posting cites for their own record or by offering the best statements on their breaking point request book, which speak to a brought together safe for limit requests to purchase or sell stocks at indicated rates or better. Breaking point orders give quick liquidity and their significance on the AMEX can be decided by the way that about 88% of the volume on AMEX emerges from exchanges which the experts don't take an interest for their own record. Be that as it may, authorities in the AMEX are not permitted to exchange in front of cutoff orders at similar costs so their statements as a rule mirror the breaking point 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 corrections in the best offer and ask cites.