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NASDAQ Vs. AMEX Term Paper

NASDAQ v AMEX NASDAQ is a U.S. electronic stock exchange that began trading in February 1971. At that time, it was the world's first electronic stock market. It is now the largest U.S. electronic stock market as it lists the most companies (approximately 3,300) and, on average, trades more shares per day than any other U.S. stock market.

The American Stock Exchange (AMEX), on the other hand, traces its origins back to colonial times when stock brokers created outdoor markets to trade new government securities; it is now the third largest stock exchange in the United States after NASDAQ and NYSE.

The AMEX is operated by American Stock Exchange LLC, a subsidiary of the National Association of Securities Dealers (NASD) who are also the operators of NASDAQ. Out of the three major American stock exchanges, the AMEX has the most liberal policies regarding company listing, and most of the companies listed on AMEX are generally smaller compared to the ones on NYSE and NASDAQ. In the AMEX, stocks, options, and exchange traded funds (ETFs) are traded centrally on the trading floor, regardless of size or source. The AMEX thus caters in particular to the small investors and the small...

("Trading on ... " 2005)
NASDAQ is the primary market for trading NASDAQ-listed stocks. However, in 2004, it introduced a single platform facility called The NASDAQ Market Center through which its clients can trade NYSE, AMEX and NASDAQ securities electronically on one trading system. The NASDAQ also introduced a Small Order Execution System (SOES) in 1984 so that orders from small investors and traders are executed automatically

. The system gives the small investors and traders the opportunity to compete on a level playing field for access to orders and execution, especially in a turbulent market. NASDAQ also offers a number of unique customer services such as a dedicated NASDAQ Director and NASDAQ Market Intelligence Desk for all NASDAQ listed companies.

("Factsheet 2005)

2. Effect of Bernard Ebbers' Case on WorldCom & the Telecommunication Industry

Bernard Ebbers, the chrismatic former CEO of WorldCom, was found guilty in March 2005 of fraud and conspiracy in the largest accounting scandal in U.S. history and sentenced to 25 years in prison. It was the culmination of the infamous WorldCom scandal that resulted in the…

Sources used in this document:
References

"Bernard Ebbers." Article from Wikipedia, the Free Encyclopedia. Retrieved on October 13, 2005 from http://en.wikipedia.org/wiki/Bernard_Ebbers

"Fact sheet 2005." (2005). NASDAQ.Com. Retrieved on October 13, 2005 from http://www.nasdaq.com/about/CorporateFactSheet2005.pdf

'Trading on the Amex: Market Structure" (2005). AMEX.com. Retrieved on October 13, 2005 from http://www.amex.com/

Average daily share volume in NASDAQ-listed securities for 2004 was 1.8 billion, more than both the NYSE and the Amex.
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