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Trading Nasdaq & NYSE

标签: NASDAQ  NYSE  分类: 股市 2006-12-11 22:43
Definitions And Other Relevant information (Part I)

MARKET STRUCTURE

NYSE

§ NYSE stands for the New York Stock Exchange

§ It was established in 1792

§ It is an auction market

NASD

§ NASD stands for National Association of  Securities Dealers

§ It is an SRO (self regulatory organization)

§ Members of the NASD are mostly market makers (financial institutions); however, Swift Trade Securities Inc. is also a member

NASDAQ

§ National Association of  Securities Dealers Automated Quotation system

§ Trading began on the NASDAQ in 1971

§ It is a dealer market

ECN

§ Electronic Communication Network

§ An ECN is a private area of cyber space where people meet to buy and sell securities

§ At swift trade, we have access to virtually all ECNs

National Market

§ Could be called the ‘world market’

§ Refers to quotes on a certain security regardless of the exchange

DAET/EDAT/DAD

§ Direct Access Electronic Trading

§ Electronic Direct Access Trading

§ Direct Access Trading

§ All mean the same thing – day trading

Market Capitalization (Cap)

§ Refers to a company’s total outstanding shares (the number of shares available to the public) multiplied by the price (the day’s closing price) of that stock

Large/Medium/Small Cap Company

§ Large cap > $1B

§ Medium – between $500M and $1B

§ Small - < $500M

CME

§ The Chicago Mercantile Exchange

§ Trades futures on interest rates, stock indexes, foreign exchange and agricultural commodities contracts and options on futures contracts

SEC

§ The Securities and Exchange Commission

§ Their mission: to protect investors and maintain the integrity of the securities markets

§ Set rules for trading that must be followed – not an SRO – a government body – LAW

MARKET FUNCTION (1)

Bid

§ An advertisement to buy a specific number of shares as a specific price

§ Located on the left side of the level 2 screen

Offer/Ask

§ An advertisement to sell a specific number of shares as a specific price

§ Located on the right side of the level 2 screen

Long

§ If a trader is long in a security means that a trader has bought shares and now owns them

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