Major Stock Exchanges in the United States
Worldwide there are more markets than I can name on this page. All large and most small countries have their own stock exchange and on some securities are traded on multiple markets and exchanges. Since the American Exchanges are what many of the readers on this page want to learn about I will focus on that and write more posts about major markets booth within the US and Internationally. I will talk about them on this page.
This will be focused on the Stock Exchanges; however there is a lot more depth to this subject. Commodities, Bonds, and Forex are all different marketplaces that won’t be covered on this page because these are subjects all on their own. Another important thing to realise is that stock indexes and stock exchanges are two different subjects. An exchange is where the securities change hands and an index is made up of specific types of stocks to track market performance.
How are Securities Traded?
In order to make buy or sell a security, you will need to find a securities broker. A securities broker is a middle man that actually makes the purchase on your behalf. The way this works is you put in your order for the stock or some other type of security. Then brokers either electronically or on the trading floor find you a seller that is willing to sell at the price you are willing to pay.
Over the Counter Market
The over the counter market OTC is one of the largest security exchanges in the United States. On this market the sell derivatives and almost anything else that is a legal for trading. One of the things listed on here are the Pink Sheet stocks that get their name from there where computers. These are normally penny stocks and other securities not traded on the other exchanges.
The NASDAQ is the second largest stock exchange in the world and is located in new your city. They where the first electronic trading market in the world and also give you free quotes around the clock. Unlike some other markets they are only open from 9:30 to 4:30pm for regular trading. You can do pre-market trading but it is risky and something that most brokers won’t allow you to do.
New York Stock Exchange
The NYSE is the largest stock exchange in the world. This is also located in New York City and is the largest electronic equities trading floor in the world. Compared to the NASDAQ this has a much larger market cap and the main difference is the location where the trades take place. The NASDAQ has always been traded through telephone or the internet where the NYSE has an actual trading floor meaning most of the trades take place in New York on Wallstreet.