Penny Stock Investing

Let’s take a little time to go inside stock market and discover its language and regulations. Stock markets are defined as places where we can trade shares of stocks in. Come on; let’s see some information about American stock markets.

There are three common stock markets in US; they are the most popular to most of American investors. The largest markets are the New York Stock Exchange (NYSE) and American Stock Exchange (Amex). The third one is known as NASDAQ stock market.

New York Stock Exchange -founded in 1792- (NYSE) is the first-largest stock exchange in the world based on Wall Street in New York City. “Big Board” is the nickname of that market. The NYSE uses the open outcry system which holds attractive stocks that get great visibility so it’s desirable to be listed there. Today, more than half of all NYSE trades are conducted electronically.

American Stock Exchange -founded in 1842- (Amex)  is the third-largest stock exchange in the world based in United States. It handles about 10% of all securities traded in the U.S. Today, almost all trading on the AMEX is in small-cap stocks.

Note: Tokyo Stock Exchange (TSE) is the second-largest stock exchange market in the world by monetary volume.

National Association of Securities Dealers Automated Quotation System -founded in 1971- (NASDAQ) is the first-electronic network maintained by the National Association of Securities Dealers. This market provides brokers and dealers with price quotations for each security traded over the counter (OTC).

The main difference between them is listing requirements which means there is a market has a hard list required which don’t allow many investors to invest in it like NYSE but on the same time investing there is very desirable. On the other side, there is another market has less demanding which make investors appealing to put their money there; of course we are talking about the two markets left Amex and OTC.

Knowing the language of markets makes our job easy to achieve our objectives in life.