Scroll down to see a list of Internet sites that will provide a free education about stock markets.
The main reasons why we need to know about stock exchanges are so that we are aware that 1) all exchanges are not equal in the stocks they trade, 2) they are the sources of vital trading information such as the volume of trading and 3) to know the different paths that our investment orders can take because electronic trading is usually several seconds faster than an open outcry system and that can make a difference to an entry or exit price.
The most popular exchanges are the NYSE (New York Stock Exchange), Nasdaq (National Association of Securities Dealers Automated Quotations system) and the AMEX (American Stock Exchange). There are also ECN’s (electronic communications networks) where the NYSE, Nasdaq and Amex stocks can be exchanged. The ECN’s include Inet – formerly Island – an Instinet subsidiary which is a subsidiary of Reuters Group, and ArcaEX by Archipeligo.
Of course, there are more stock exchanges in the USA, for example, the Pacific Exchange and the Philadelphia Stock Exchange. There are many more all over the world.
There are two other important stock markets, the OTCBB and the Pink Sheets. The NASD (National Association of Securities Dealers) oversees the OTC (over the counter) Bulletin Board, though it is not part of the Nasdaq stock market. The OTCBB is an electronic quotation system that is used for many small companies, often called “microcaps”. OTCBB securities include national, regional, and foreign equity issues, warrants, units, American Depositary Receipts (ADRs), and Direct Participation Programs (DPPs)”.
Microcaps are also listed on Pink Sheets. Small companies that are listed on the OTCBB and the Pink Sheets do not have to meet the minimum listing standards of the major exchanges. They typically trade with low volume although the volumes traded on both the OTCBB and the Pink Sheets have grown enormously over the last several years and now compare to volumes on the Nasdaq. However, the dollar volume on the OTCBB and Pink Sheets is but a fraction of that on the Nasdaq. The average price of a share traded on the OTCBB or Pink Sheets is about 1/100 of that traded on the Nasdaq. As a result the stocks are usually much riskier investments than those traded on the major exchanges. Because of the low dollar volume the stock price is much easier to manipulate so the OTCBB and Pink Sheet stocks are much more open to scams.
No payment of any kind has been accepted for the inclusion of any Internet site below
The links below will take you to other sites. Investors Internet Inc. does not accept any responsibility for the content of any third party website.
When you have explored some of the sites below please give us your comments by sending an email to info@investorsinternet.com
http://www.amex.com/ the AMEX (American Stock Exchange) site has the largest listing of Exchange Traded Funds (ETFs) for which it shows quotes, Quick Facts, an ETF screener and education.
http://www.bullinvestors.com/ has some stock market history.
http://www.inetats.com/ INET is an ECN’s (electronic communications networks) where NYSE, Nasdaq and Amex stocks can be exchanged. INET reports trade and volume information. INET was formed in 2004 by merging the Instinet and Island ECN's. The http://www.island.com/ site carries news pertinent to INET.
http://www.midnighttrader.com/ has a brief history of the ECN’s.
http://www.nasdaq.com/ the Nasdaq (National Association of Securities Dealers Automated Quotations system) site has a lot of good information about Nasdaq indexes and stocks. http://www.nasdaq.com/ has four supplemental sites that provide information about trading - http://www.nasdaqtrader.com/ , Nasdaq news - http://www.nasdaq.com/newsroom, the Nasdaq 100 index tracking stock QQQQ - http://www.nasdaq-100.com/ and corporate services - http://www.nasdaq.net.
http://www.nyse.com/ the NYSE (New York Stock Exchange) site provides basic volume and market statistics but it not user-friendly for the average investor.
http://www.openecry.com/ has links to the web sites of many foreign stock exchanges in its Traders Toolbox section.
http://www.otcbb.com/ is the OTC (over the counter) Bulletin Board site. It has educational materials such as "Comparison of Nasdaq and OTCBB" as well as quotes and market statistics.
http://www.pacificex.com/ The Pacific Exchange.
http://www.pennymarkets.com/ points out that “an OTC equity security generally is any equity that is not listed or traded on Nasdaq® or a national securities exchange. OTCBB securities include national, regional, and foreign equity issues, warrants, units, American Depositary Receipts (ADRs), and Direct Participation Programs (DPPs)”.
http://www.phlx.com/ The Philadelphia Stock Exchange, which was the first stock exchange to be established in the United States. It was founded in 1790.
http://www.pinksheets.com/ provides quotes, charts and market activity.
http://www.sec.gov/ the U.S. Securities and Exchange Commission site is a place where we can check out brokers and advisors and file complaints.
http://www.sec.gov/investor/pubs/microcapstock.htm has information about the OTCBB, the pink sheets and microcaps.
http://www.stocks.about.com/ provides valuable education about the exchanges. It has many articles that deal with topics such as “What is a Stock”, the different US stock markets, and the differences between the New York Stock Exchange and the Nasdaq.
http://www.stockpatrol.com/ has a Regulators On Patrol section that monitors the activities of the SEC, NASD and State Regulators. It includes contact information in case you have a complaint against a broker, brokerage firm or investment advisor. Its Stock Watchdog and other sections are essential reading to avoid suspect stocks and scams.
http://www.tradearca.com/ is a site primarily for professional investors. It states in About Archipelago its belief that everyone should have access to the same information, and that it has "everything out in the open". A principle with which Investors Internet agrees.
Some of the glossaries provide information on the working of the stock exchanges.
Back Next Topic
