NASDAQ

Another large stock exchange is called NASDAQ, which stands for the National Association of Securities Dealers Automated Quotations System. It is pronounced "nazzdack." Technically, NASDAQ is a computer network without a trading floor like that of the NYSE. The NASDAQ "matchmakers" normally sit at computer terminals at their offices around the country, unlike the matchmakers of the NYSE on a huge trading floor. Your sell or buy orders are executed through the NASDAQ computer networks.

When NASDAQ was founded twenty-six years ago, it was a trading place for small companies. Now, NASDAQ is growing fast, its volume of transactions surpassing the NYSE on many trading days. Today, high-tech companies, like Microsoft, Netscape, Intel, MCI, Sun Microsystems, and Apple Computer, list their stocks in the NASDAQ.

Additionally, there are more securities exchanges such as American Exchange (AMEX) and the other ones around the world. For more information, click here.

Of course, you cannot just walk onto the NYSE trading floor or hook up to the NASDAQ computer networks to buy or sell stocks. You need a stockbroker.