American Stock Exchange - AMEX

  

Categories: Investing, Trading

The AMEX is a stock exchange, which is a place where securities can be bought or sold. The AMEX happens to be the third-largest stock exchange in the U.S. and it's a private intentionally non-profit company.

About 15% of all trades in the U.S. are made through the AMEX, and its competitive brethren are NYSE and NASDAQ.

Related or Semi-related Video

Finance: What is Electronic Communicatio...12 Views

00:00

Finance a la shmoop what is the electronic communication network or ECN?

00:09

all right it's the computerized and wired version of this for a small fee [Large computer network]

00:15

traders can plug in to a network to trade stocks you know think about it

00:20

like Facebook for stock traders only with less political ranting and fewer

00:24

photographs of babies and freshly cooked meat generally well generally speaking [A pan of meat and potato's appear]

00:29

ECNs are "off-market" that is they aren't really directly part of

00:35

an established trading system like the New York Stock Exchange or Nasdaq or one

00:39

of the other blessed exchanges they connect market makers directly to third

00:44

parties allowing them to trade to their heart's content there aren't a lot of

00:48

actual physical hands at work here most of the limit orders are matched

00:53

electronically the network charges its fee the transaction is processed and [Company share price appears]

00:58

life moves on so think about it like it's 2:00 a.m. on a Saturday and Joe who

01:03

likes to trade in his underwear don't ask us why it's just dying to sell a [Joe sits down at PC]

01:07

hundred shares of coke to Betty who likes to trade while head-banging to Led

01:12

Zep and you know likes to trade with Achmed who's saving money for an air

01:17

conditioner yeah well no sweat so this is perfect for anyone who wants to

01:21

become active in the trading of stocks but hates any kind of physical human [Man waving to woman and woman walks by]

01:26

interaction yeah don't worry the robot rebellion will soon be upon us and ECNs

01:31

will rule the roost

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