by John Border

As a new entrant into the stock market you will keep hearing about the terms NYSE, AMEX and NASDAQ and more of the international ones nowadays like HangSeng or the LSE or even the Luxembourg stock exchange.

These are stock exchanges where the exchange of stocks takes place between the buyers and the sellers. In effect these are the actual stock markets but the term stock market is used in a broader term to signify the overall stock holdings, indices, exchanges and everything else related to stocks.

New York Stock Exchange started in 1792 and is located at the epitome of the US financial icon street called the Wall Street. It is undoubtedly one of the largest exchanges in the country. All the companies aspire to be listed here so there shares can be traded on this exchange but before a company can be listed here they have to complete certain set of criteria in terms of financial strength as well as the industry they operate in.

For trading at NYSE you need to be either a registered broker with NYSE or you need to have an arrangement with an entity who is a registered broker at NYSE. It is not an easy thing to become a broker at NYSE and it costs a huge amount of money may be say a million dollars.

Similar to NYSE is American stock exchange which is again in the financial district of the country called New York. The American exchange has stocks for trading but also has options for trading. The AMEX can trade smaller companies than traded in NYSE and hence it is attractive to a lot of companies.

Another exchange which is relative newcomer is the NASDAQ. It started its operation in 1971 and has grown tremendously in size as well as the number of companies listed here. Initially it attrcated only technology companies with the likes of Microsoft and Intel.This exchange has no floor based trading and all trading is done through screen based trading only.

If you are international investor there are stock exchanges apart from America in other countries which you will keep hearing like the Bombay Stock Exchange, Hong Kong Stock Exchange or Hang Seng, Luxembourg stock Exchange or even the FTSE.

You should know enough about the exchanges to trade effectively and make good money.

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A good tip about understanding dow jones and also make sure that you learn how to read stock market charts

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