According to The Financial Guide Glossary: "The American Stock Exchange (AMEX) is America’s second largest floor based stock exchange (after the NYSE). In terms of volume, market capitalization and listings however, it is dwarfed by its rivals.In addition to equities, AMEX offers a range of derivative products, including options, index shares and depository receipts.
AMEX is an auction market, with "specialists" overseeing the auction process for each individual stock. Customer orders are electronically sent to the trading floor, then matched with the best available bid or offer currently available.
Specialists are appointed in each security, whose job it is to oversee trading in their assigned stock, ensuring a fair and orderly market, and smoothing out supply and demand by trading themselves.
Specialists also hold 'away from the market' orders on behalf of customers: they are then responsible for executing these when the market reaches the specified price limit."
No comments:
Post a Comment