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Guide to Exchanges

Knowing U.S. stock exchanges


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Exchange knowledge is a must if you want to be a professional investor or trader. The exchanges markets are dynamic and volatile, which can be challenging to understand. However, you must stay on top of these changes; otherwise, your business can suffer.

Today, it’s common to see an exchange merge with another one, creating a new entity and stock exchange. 3 examples come to mind. NYSE and Euronext merged to become NYSE Euronext. NASDAQ and OMX merged to become NASDAQ OMX. NYSE Euronext agreed to acquire the American Stock Exchange. Though these changes seem tumultuous, new and better opportunities abound, including:
  1. Dual listing programs.
  2. Increasing more listing and trading opportunities for ETFs.
  3. Providing more liquidity.




Action Steps
The best contacts and resources to help you get it done

Take advantage of NASDAQ OMX's dual listings


This is one program you cannot afford to ignore. NASDAQ started dual listings back in 2004. Dual listings enable a company's stock to be listed on NASDAQ, but also listed on another exchange. As a result, this program gives you better access to liquidity and chances of your trades being executed faster.

I recommend: Go to NASDAQ’s website, where it gives information of the dual list program. You can also check out NASDAQ OMX’s website. One of the milestones NASDAQ OMX accomplished is that it signed a dual listing agreement with the Tel Aviv Stock Exchange.

Invest or trade in ETFs on the American Stock Exchange


American Stock Exchange was the pioneer for ETFs (exchange traded funds). ETFs consist of securities that look like an index of a specific sector; however, you buy and sell them like a single stock. For example, you can buy and sell ETFs that specialize in international stocks or bonds. Unlike mutual funds, ETFs don't have fees such as 12b-1 or redemption fees. You can also trade ETFs, unlike mutual funds.

I recommend: Check out American Stock Exchange’s website. You’ll find valuable information on ETFs, and look at its option exchanges section, charts and news. Investor's Business Daily tracks ETFs and offer analysis from stock exchange analysts. You will find its ETF Center section useful. It features rankings on ETFs, based on their performances and news on ETFs.

Trade or invest on the world's largest and most liquid exchange group, NYSE Euronext


You'll have an abundance of investment options here. This exchange leads in listings, cash equities, and other securities. It consists of 6 cash equities exchanges in 5 countries. If you're looking to trade or invest in options, you can trade on its option exchanges.

I recommend: Look at NYSE Euronext’s website, where you’ll find a plethora of investment securities. You can get reports from stock exchange analysts. You can also view charts, annual performances, and other information. You’ll want to look at the Wall Street Journal for its section on NYSE.

Tips & Tactics
Helpful advice for making the most of this Guide

  • Store these stock exchanges websites in either your Favorites or Bookmark folder. While that seems an obvious idea, it's important to do so; news and information about exchanges changes so frequently that you'll need to go to their websites often.
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