Specialists help execute orders for other members.
Broker: Specialists represent public orders and try to match buyers and sellers.
Dealer: Specialists are willing to buy or sell stock from their own inventory if needed.
Auctioneer: Specialists facilitate the continuous auction process on the trading floor.
Their goal is to balance supply and demand and keep the market moving smoothly.
Specialists are required to maintain a fair and orderly market. This means displaying
competitive bid and ask prices and stepping in to buy or sell shares if there is an
imbalance or lack of liquidity. They are also responsible for executing limit orders in
their book when the market reaches the specified price level.
Forex nitty gritty finally, a forex trading course for beginners!MontanaDevis
The forex market is the world's largest international currency trading market operating non-stop during the working week. Most forex trading is done by professionals such as bankers. Generally forex trading is done through a forex broker - but there is nothing to stop anyone trading currencies. Forex currency trading allows buyers and sellers to buy the currency they need for their business and sellers who have earned currency to exchange what they have for a more convenient currency. The world's largest banks dominate forex and according to a survey in The Wall Street Journal Europe, the ten most active traders who are engaged in forex trading account for almost 73% of trading volume.
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Forex nitty gritty finally, a forex trading course for beginners!MontanaDevis
The forex market is the world's largest international currency trading market operating non-stop during the working week. Most forex trading is done by professionals such as bankers. Generally forex trading is done through a forex broker - but there is nothing to stop anyone trading currencies. Forex currency trading allows buyers and sellers to buy the currency they need for their business and sellers who have earned currency to exchange what they have for a more convenient currency. The world's largest banks dominate forex and according to a survey in The Wall Street Journal Europe, the ten most active traders who are engaged in forex trading account for almost 73% of trading volume.
Simply put, forex is the trading of currency, buying low and selling
high. There are some levels of risks involved as in all other risky
dealings but the rewards can be very good indeed.
Introducing Forex Foundry. Master The Forex Secrets Of The Top Traders And Create Massive Wealth For Yourself. It is a complete Forex Guide. It will help you to get better Trading Results.
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“A Study on various techniques of motivation of employees”fiza91
Motivating employees can be one of biggest challenges as an employer, but learning how to inspire each individual is the key to a successful organization.
Justification of the study
This study examined the concept of employee motivation as a mean for delivering superior service quality in the hospitality industry as well as other similar industries. This paper provides a framework for managers to use to enhance their understanding of employee motivation and its sources. A successful quest for service quality can be the difference between success and failure for many service organizations. In today’s competitive environment, customers are always looking for better service, more knowledgeable support, faster response time, and lower prices. Service organization that allow their employee productivity standards to deteriorate by not encouraging improvement in the volume and quality of output, will see their customer base dissolve.
Here Are Some Secret Techniques To Earn Massive Profits From Trading. Trading Can Make You Millionaire. Here Are Some Proven Ways To Earn Explosive Money From Trading.
“A Study on various techniques of motivation of employees”fiza91
Motivating employees can be one of biggest challenges as an employer, but learning how to inspire each individual is the key to a successful organization.
Justification of the study
This study examined the concept of employee motivation as a mean for delivering superior service quality in the hospitality industry as well as other similar industries. This paper provides a framework for managers to use to enhance their understanding of employee motivation and its sources. A successful quest for service quality can be the difference between success and failure for many service organizations. In today’s competitive environment, customers are always looking for better service, more knowledgeable support, faster response time, and lower prices. Service organization that allow their employee productivity standards to deteriorate by not encouraging improvement in the volume and quality of output, will see their customer base dissolve.
This Document is a Short Presentation of The Stock Exchange - The New York Stock Exchange (NYSE) and Defines the New York Stock Exchange, Its Participants, Purpose, and also Regulatory Organs of the Stock Exchange
Introducing Forex Foundry – Master the Forex Secrets of the Top Traders and Create Massive Wealth for Yourself. Inside this eBook, you will discover the topics about what is forex, about the new york stock exchange, what is traded, what are forex pairs, about the market size and liquidity, what is a spot market, what is futures trading, what are options trading, what are exchange-traded funds and the dangers of trading if you don’t know how.
Introducing Forex Foundry - Master the Forex Secrets of the Top Traders and Create Massive Wealth for Yourself. Inside this eBook, you will discover the topics about what is forex, about the New York Stock Exchange, what is traded, what are forex pairs, about the market size and liquidity, what is a spot market, what is futures trading, what are options trading, what are exchange-traded funds and the dangers of trading if you don't know how.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
1. 1
(Project)
BBA-4
Foundation University Institute Of
Engineering and Management Sciences
Course:
Financial Institutions and Markets
Programme:
BBA (Hons)
Submitted By:
SaifUllah Malik
Ibraheem Ansar
Bilal Ahmad
Raheem Ansar
Muhammad Hussain
Khalid Razzaq
Abdul Basit
Arslan Pervaiz
Submitted To:
Mr Naveed Anjum
2. 2
In the name of Allah
The Most Gracious, The Most merciful
3. 3
Surah AL-Baqarah
“Ho sakta ha ka aik cheez tumhe nagawar ho aur wahi tumhare
liye behtar ho. Aur ho sakta ha ka aik cheez tumhe pasand ho aur
wohi tumhare liye buri ho. Allah janta ha tum nahi jante”
Verse # 216
4. 4
MOTTO (GROUP)
*YOU WERE BORN WITH WINGS, WHY
PREFER TO CRAWL THROUGH LIFE – (RUMI)
*TO WHAT HEIGHT CAN I NOT RISE
*
LIVE EVERYDAY LIKE THERE’S NO
TOMMOROW
*
TAKE EVERYTHING I CAN & MORE
QUOTE
*OF ALL THE THINGS I HAVE LOST MISS
MY MIND THE MOST
5. 5
ACKNOWLEDGEMENT
We at first bow our head before Allah Almighty who bestowed his
countless blessings upon us, guided us towards the way of success, and
blessed us with courage of facing problems and obstacles. We have no
words at our command to express our deepest sense of gratitude of All
Mighty Allah who enabled us to complete our project against all odds.
We wish to place our deep sense of thanks to Mr. Naveed Anjum who
guided us to complete this project in its true sense. His valuable experience
and knowledge of the field removed the difficulties at all crucial junctures.
We acknowledge untiring efforts of our teacher who has been a beacon of
light for us. He broadened our horizon by allowing us to research at our
own and gave us free will to right whatever we wanted to.
7. 7
TABLE OF CONTENTS
TOPICS PAGE NO’S
Executive Summary………………………………………………………….1
Stock Trading Occurs………………………………………………………...2
National Stock Exchanges……………………………………………………2
Securities Act of 1934…………………………………………………………3
Type of Markets …………………………………………………………… 4
EXCHANGES. ……………………………………………………………… 4-5
HISTORY (NYSE)……………………………………………………………...6
Operation………………………………………………………………………7
Trading…………………………………………………………………………8
Post……………………………………………………………………………..9
Super Dot………………………………………………………………………9
Single Specialist Market Maker………………………………………………9
Commission Broker…………………………………………………………..10
Other transactors on the exchange
Floor include the following categories……………………………………..10
NYSE Specialist………………………………………………………………..10
Types of orders………………………………………………………………...11
Actual Physical Paper Book…………………………………………………..12
Perception and Cost…………………………………………………………...12
Major roles……………………………………………………………………...12
HISTORY (NASDAQ)………………………………………………………… 14
Dealer’s market…………………………………………………………………16
Over-the-counter (OTC) market………………………………………………16
Trading schedule……………………………………………………………….17
8. 8
Quotes Availability…………………………………………………………….17
The Market Maker……………………………………………………………...17
Buy and Sell…………………………………………………………………….18
Level II Screens………………………………………………………………....19
Perception and Cost……………………………………………………………19
Nasdaq Markets………………………………………………………………..19
NASDAQ Operation…………………………………………………………...19
Nasdaq Market Tiers…………………………………………………………..20
Some features of the two tiers of Nasdaq……………………………………20
9. 9
EXECUTIVE SUMMARY
Whenever someone talks about the stock market as a place where equities are
exchanged between buyers and sellers, the first thing that comes to mind is either
the NYSE or Nasdaq, and there's no debate over why. These two exchanges
account for the trading of a major portion of equities in North America and the
world. At the same time, however, the NYSE and Nasdaq are very different in
the way they operate and in the types of equities that trade upon them. Knowing
these differences will help you better understand the function of a stock
exchange and the mechanics behind the buying and selling of stocks
10. 10
Stock Trading Occurs
In the United States, secondary market trading in common stock has occurred in
two different ways.
1. The first is an organized exchange, which are specific geographical
locations called trading floors, where buyers and sellers physically meet.
The trading Mechanism on exchanges is the auction system, which results
from the presence of many competing buyers and sellers assembled in one
place.
2. The second type is via over-the-counter (otc) trading, which results from
geographically dispersed traders or market-makers linked to one another
via telecommunication systems. That is, there is no trading floor. This
trading mechanism is a negotiated system whereby individual buyers
negotiate with individual sellers
National Stock Exchanges
In the United States, there are two national stock exchanges
(1) The New York Stock Exchange (NYSE), commonly called the Big Bang and
(2) the American Stock Exchange (AMEX or ASE), also called the Curb. National
stock exchange trade stocks of not only U.S corporations but also non-
Corporations. In addition to the national exchanges, there are regional stock
exchanges in Boston, Chicago (called the Midwest Exchange), Cincinnati, San
11. 11
Francisco 9called the Pacific Coast Exchange) and Philadelphia. Regional
exchanges primarily trade stocks from the corporation based with in their region.
Major OTC Market
The major OTC market in the United States is Nasdaq (the National Association
of Securities Dealers Automated Quotation System), which is owned and
operated by the NASD (the National Association of Securities Dealers). The
NASD is a securities industry self-regulatory organization (SRO) that operates
subject to the oversight of the SEC. NASDAQ is a national market. During 1998,
Nasdaq and AMEX merged to form the Nasdaq-AMEX Market Group, Inc.
The NYSE is the largest exchange in the United States, with approximately 3,000
companies ‘ shares listed. The AMEX is the second largest national stock
exchange in the United States, with more than 750 issues listed for trading.
Nasdaq has a greater number of listed stocks but with much less market
capitalization than the NYSE.
Securities Act of 1934
According to the Securities Act of 1934. There are two categories of traded stocks
Listed Stocks
The first is exchange-traded stocks, which are also called listed stocks.
Nonlisted stocks
The second is OTC stocks, which are also non-exchange traded stocks and are,
thereby, by interference, Nonlisted.
12. 12
Listing requirements
Nasdaq has listing requirements (the Nasdaq National Market and the Nasdaq
Small Capitalization Market). Thus the more practical categorization of these
categories is as follows:
1. Exchange listed stocks (national and regional exchange)
2. Nasdaq listed OTC stocks
3. Non-Nasdaq OTC stocks
Type of Markets
The four Major type of markets on which stocks are traded are referred to as
follows:
1. First Market- Trading on exchanges of stocks listed on an exchange.
2. Second Market- Trading in the OTC market of stocks not listed on an
exchange.
3. Third Market- Trading in the OTC market of stocks listed on an
exchange.
4. Fourth Market- Private transactions between the institutional
investors who deal directly with each other without utilizing the
services of a broker-dealer intermediary
13. 13
EXCHANGES
Exchange markets are called central auction specialist systems and OTC
markets are called multiple market-maker systems. Recently however, a new
method of trading common stocks via independently owned and operated
Electronic Communications Networks (ECNs) has developed and is growing
quickly.
Stock exchange is formal organization, approved and regulated by the Securities
and Exchange Commission (SEC). They are made up of members who use the
exchange facilities and systems to exchange or trade listed stocks.
These exchanges are physical locations where members assemble to trade. Stocks
that are traded on an exchange are said to be listed stocks. That is, these stocks
are individually approved for trading on the exchange by the exchange. To be
listed, a company must apply and satisfy requirements established by the
exchange for minimum capitalization shareholder equity, average closing share
price, and other criteria. Even after being listed, exchanges may delist a
company’s stock if it no longer meets the exchange requirements.
To have the right to trade securities or make markets on an exchange floor firms
or individuals must become a member of the exchange, which is accomplished
by buying a seat on the exchange. The number of seats is fixed by the exchange
and the cost of a seat is determined by supply and demand of those who want to
sell or buy seats. In early 2001, there were 1,366 seats on the NYSE, and the cost
of a seat was $2 million.
14. 14
HISTORY
New York Stock Exchange
Type Stock exchange
Location New York City, New York, United States
Coordinates 40°42′24″N 74°00′41″W
Owner NYSE Euro next
Key people *Marsh Carter is Chairman of the (NYSE)
*Duncan Niederauer (CEO)
Currency United States dollar
No. Of listings 2,773
Market Cap US$25 trillion (2006)
Volume US$22 trillion (2006)
15. 15
Indexes (1) NYSE Composite
(2) Dow Jones Industrial Average
Website www.nyse.com
Built/Founded: 1903
Architect: Trowbridge & Livingston; George B. Post
Architectural style(s): Classical Revival
Governing body: Private
1792 - The NYSE acquires its first traded securities
New York Stock Exchange is an equity (stock) exchange located at 11 Wall Street
in lower Manhattan, New York, USA). It is the largest stock exchange in the
world by dollar value of its listed companies' securities. As of October 2008, the
combined capitalization of all domestic New York Stock Exchange listed
companies was US$10.1 trillion. The NYSE is a physical place where traders
trade stocks
Operation
The NYSE is operated by NYSE Euro next, which was formed by the NYSE's
2007 merger with the fully electronic stock exchange Euro next.
The NYSE is an auction-based market where traders meet on the floor of the
exchange, using person-to-person, telephone orders or electronic orders
In the mid-1960s, the NYSE Composite Index (NYSE: NYA) was created
16. 16
Trading
A specialist is a dealer representing a NYSE specialist firm - one of the
main facilitators of trade on the exchange
The New York Stock Exchange (sometimes referred to as "the Big Board")
provides a means for buyers and sellers to trade shares of stock in companies
registered for public trading.
The NYSE is open for trading Monday through Friday between 9:30–16:00 ET
On the trading floor, the NYSE trades in a continuous auction format, where
traders can perform stock transactions on behalf of investors.
They will gather around the appropriate post where a specialist broker, who is
employed by an NYSE member firm (that is, he/she is not an employee of the
New York Stock Exchange), acts as an auctioneer in an open outcry auction
market environment to bring buyers and sellers together and to manage the
actual auction. They do on occasion (approximately 10% of the time) facilitate the
trades by committing their own capital and as a matter of course distribute
information to the crowd that helps to bring buyers and sellers together.
As of January 24, 2007, all NYSE stocks can be traded via its electronic Hybrid
Market (except for a small group of very high-priced stocks). Customers can now
send orders for immediate electronic execution, or route orders to the floor for
17. 17
trade in the auction market. In the first three months of 2007, in excess of 82% of
all order volume was delivered to the floor electronically
Post
Trading in stock listed on the NYSE is conducted as a centralized continuous
auction market at a designated location on the trading floor, called a post, with
brokers representing their customers buy or sell orders. A single specialist is the
market maker for each stock. A member may be designated as a specialist for the
common stock of more than one company: that is, several stocks can trade at the
same post. But only one specialist is designated for the common stock of each
listed company. A specialist for each stock stands at a trading position around
one of the17 NYSE Posts. Each post is essentially an auction site where an order,
bids, offers, arrive.
Super Dot
Most orders arrive from floor brokers and via an electronic delivery system
called the Super Dot. Super dot is an electronic order routing and reporting
system, which links members firms electronically worldwide directly to the
specialist‘s post on the trading floor of the NYSE. The majority of NYSE orders
are processed electronically through super dot.
Single Specialist Market-Maker
In addition to the single specialist market maker on an exchange, other firms that
are the members of an exchange can trade for themselves or on behalf of their
customers. NYSE members firms, which are broker-dealer organization that
18. 18
serve the investing public, are represented on the trading floor by brokers who
serve as fiduciaries in the execution of customers orders.
Commission Broker
The largest category on the NYSE is that of the commission broker. A
commission broker is an employee of one of the nearly 500 securities houses
(stockbrokers) or wire houses) devoted to handling business on the exchange.
Commission brokers execute orders for their firm on behalf of their customers at
agreed commission rates. The houses may deal for their own account as well as
on behalf of their clients
Other transactors on the exchange floor include the following
categories
Independent floor brokers work on the exchange floor and execute orders for
other exchange members who have more orders than they can handle alone or
who require assistance in carrying out large orders. Floor brokers take a share in
the commission received by the firm they are assisting.
Registered traders are individual members who buy and sell for their own account.
Alternatively, they may be trustees who maintain membership for the convenience of
dealing and to save fees.
19. 19
NYSE Specialist
Specialists are dealers or market makers assigned by the NYSE to conduct the
auction process and maintain an orderly marketing one or more designated
stocks. Specialists may act as both a broker (agent) and a dealer (principal).
1. Broker (Agent). The NYSE has seven specialist firms
In their role as a broker or agent, specialists represent customer orders in their
assigned stocks, which arrive at their post electronically or entrusted to them by
a floor broker to be exected if and when a stock reaches a price specified by a
customer (limit or stop orders).
2. Dealer (principal)
As a dealer or a principle, specialists buy and sell shares in their assigned stocks
for their own accounts as necessary to maintain an orderly market. Specialists
must always give preference to public orders over trading for their own
accounts.
Public Orders
In general, public orders for stocks traded on the NYSE, if they are not sent to the
specialist’s post via Super Dot, are sent from the member firm’s office to its
representative on its exchange floor, who attempts to execute the orders in the
trading in the crowd.
20. 20
Types of orders
There are certain types of orders where the order will not be perform
immediately on the trading floors. These are limit orders and stops orders. If the
order is at a limit order or a stop order and the member firm’s floor brokers
cannot transact the order immediately, the floor broker can wait in the trading
crowd or give the order to the specialist in the stock, who will enter the order in
that specialist’s limit order book (or simply book) for later execution based on the
relationship between the market price and the price specified in the limit or stop
order. The book is the list on which specialist keep the limit and stop orders that
are given to them, arranged with size, from near the current market price further
away from it.
Actual Physical Paper Book
Whereas the book used to be an actual physical paper book, it is now electronic.
Only the specialist can see the orders in the book for their stocks. This totally
with respect to the specialists, which to some degree offsets their obligation to
make fair and orderly markets.
Perception and Cost
21. 21
The companies on NYSE are perceived to be better established. Its listings
include many of the blue chip firms and industrials that were around before our
parents, and its stocks are considered to be more stable and established.
Major roles
Specialists working on the NYSE have four roles to fulfill in order to ensure a fair and
orderly market:
1. Auctioneer - because the NYSE is an auction market, bids and asks are
competitively forwarded by investors. These bids and asks must be posted for the
entire market to see to make certain that the best price is always maintained. It is
the job of the specialist to ensure that all bids and asks are reported in an accurate
and timely manner, that all marketable trades are executed and that order is
maintained on the floor. Along with posting the daily bid and ask prices, the
specialist must also set the opening price for the stock every morning. This price
can greatly differ from the previous day's closing price based on after-hours news
and events. The role of the specialist is to find the correct market price based on
supply and demand.
2. Agent - the specialist can also accept limit orders relayed by investors through
brokers or electronic trading. It is the responsibility of the specialist to ensure the
order is transacted appropriately on behalf of others, using the same fiduciary care
22. 22
as the brokers themselves once the price of the stock has reached the limit
criteria.
3. Catalyst - as the specialists are in direct contact with the bidders and sellers of
particular securities, it is their responsibility that enough interest exists for a
particular stock. This is carried out by specialists seeking out recently active
investors in cases where the bids and asks can't be matched. This aspect of the
specialist's job helps to induce trades that may not of happened if the specialist
had not been there to bring buyers and sellers together.
4. Principal - in the instance where there's a demand-supply imbalance of a
particular security, the market maker must make adjustments by purchasing and
selling out of his/her own inventory to equalize the market. If the market is in a
buying frenzy the specialist will provide shares from their inventory until the
price is stabilized. They'll also buy shares for their inventory in the event of a
large sell off.
23. 23
HISTORY
NASDAQ
Type Stock exchange
Location New York City, United States
Owner The NASDAQ OMX Group
Key people *Robert Greifeld (CEO)
*H. Furlong Baldwin (Chairman)
Currency USD
No. Of listings 3,800
Indexes (1)NASDAQ Composite
(2)NASDAQ-100
(3)NASDAQ Biotechnology Index
Website www.nasdaq.com
24. 24
NASDAQ
NASDAQ originally was the acronym for the National Association of Securities
Dealer Automated Quotation system, NASDAQ was founded in 1971, and
provided quotes for Over-the-Counter (OTC) stocks not listed on other markets.
For that reason, it became associated in people's minds with technology stocks.
The Nasdaq, on the other hand, is not a physical entity. The Nasdaq, on the other
hand, is strictly an electronic exchange.
The Nasdaq stock market was developed as a wholly owned subsidiary of the
NASD. The Nasdaq is a national securities association, an SRO subject to
oversight by the SEC. NASD, a private organization, represents and regulates the
dealers in the OTC market. Nasdaq is a flagship market of the NASD. Nasdaq is
essentially a telecommunication network that links thousands of geographically
dispersed, market-making participants. Nasdaq is an electronic quotation system
that provides price quotations to market participants on Nasdaq listed stocks.
Although there is no critical trading floor, Nasdaq has become an electronic
“virtual trading floor”. There are more than 4700 common stocks included in the
Nasdaq system with a total market value of over $3.5 trillion. Some 535 dealers,
known as market-makers, representing some of the world’s largest securities
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firms provide competing bids to buy and offers to sell Nasdaq stocks to
investors.
Dealer’s market
The Nasdaq is a dealer's market, wherein market participants are not buying
from and selling to one another but to and from a dealer, which, in the case of the
Nasdaq, is a market maker The Nasdaq is a computer-based stock exchange
where buyers and sellers meet electronically .The Nasdaq might be known for its
fancy Market Site Tower and broadcast studio in Times Square, but very little is
done there.
Over-the-counter (OTC) market
The Nasdaq is an over-the-counter (OTC) market and it relies on market makers
rather than specialists to facilitate trading and liquidity in stocks. For each stock,
there is at least one market maker
Rather than being an auction market, the Nasdaq is a communications network
between thousands of computers. Instead of brokers calling out orders, market
makers place their names on a list of buyers and sellers, which is then distributed
by the Nasdaq in a split second to thousands of other computers. If you wish to
buy a stock that trades on the Nasdaq, your broker will either call up a market
maker with the information of your trade or enter your order into a Nasdaq-
sponsored online execution system
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Trading schedule
NASDAQ has a pre-market session from 07:00am to 09:30am, a normal trading session
from 09:30am to 04:00pm and a post-market session from 04:00pm to 08:00pm (all times
in EST)
The National Association of Securities Dealers Automated Quotation System
(NASDAQ) is the largest stock exchange in the world in terms of daily traded volume
with 3,200 listed securities. NASDAQ is a self-regulatory body that licences brokers and
oversees trading practices. It is not a physical location exchange, but a computerized
network, with no members and no governing body
Quotes Availability
NASDAQ quotes are available at three levels:
• Level 1 shows the highest bid and lowest offer — the inside quote.
• Level 2 shows all public quotes of market makers together with
information of market makers wishing to sell or buy stock and recently
executed orders.
• Level 3 is used by the market makers and allows them to enter their
quotes and execute orders.
The Market Maker
The market maker is an investment company that registers with the SEC to buy
and sell a particular stock on the Nasdaq. A market maker is a broker-dealer who
facilitates the trading of shares by posting bid and ask prices along
with maintaining an inventory of shares
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Nasdaq has nearly 300 market makers
Unlike their counterparts at the NYSE, the market makers work through a
computer network rather than on the floor of a physical exchange.
Their job is, literally, to make a market in a particular security. Here is what they
do:
• They fill orders for their company’s customers and for their own account
• They also act as dealers to profit from the difference between the bid and
ask price for the stock
The Nasdaq requires market markers to provide a “two-sided quote” in the
securities they cover.
Buy and Sell
This means they must post a price they will buy at and a price they will sell at (a
bid and ask price –These prices along with customer orders go into the Nasdaq
computer system and the system ranks the orders.
The best prices to buy and the best prices to sell automatically go to the top of the
queue and the computer fills them first. The difference is the computer moves
orders and prices through the system faster than any human ever could
Unless you have access to an information provider that offers Level II Nasdaq
screens, you will never see this process at work. Level II screens reveal the
process of ranking prices and a tremendous amount of information about orders.
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Level II Screens
You can buy access to Level II screens from a number of vendors; however, it
could cost up to $300 per month or more depending on what options you choose.
Day traders, swing traders and others who trade on very tight margins need this
type of information. Most other investors do not.
Perception and Cost
The Nasdaq is typically known as a high-tech market, attracting many of the
firms dealing with the Internet or electronics. Accordingly, the stocks on this
exchange are considered to be more volatile and growth oriented.
Nasdaq Markets
• NASDAQ Global Select Market
• NASDAQ Global Market
• NASDAQ Capital Market
• NASDAQ PORTAL Market
NASDAQ Operation
Not all securities trade through the NASDAQ system. NASDAQ operates the
Nasdaq National Market list, where the larger NASDAQ largest stocks are listed
(Intel, Microsoft etc), and the Nasdaq Small Cap Market list, where small
companies with high growth potential are listed. NASDAQ also operates the
OTC Bulletin Board, which lists quotes for stocks registered only at the
Securities Exchange Commission (SEC) and not on any exchange. Also,
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NASDAQ operates the Nasdaq Pink Sheets, for stocks not registered with the
SEC.
In order to become more competitive with the NYSE and the international
markets, NASDAQ has merged with the American Stock Exchange (AMEX) in
1998 to form an organized investment network. Although this network is still
referred to as NASDAQ, securities are traded separately on the two markets.
Nasdaq Market Tiers
The NASDAQ stock market has two board tiers of securities: (1) the Nasdaq
National Market (NNM) and (2) the small Capitalization Market. Newspapers
contain separate security for these two tiers of stocks (labelledthe Nasdaq
National Market” and the “Nasdaq Small Capitalization Market”). The Nasdaq
NMS is the dominant OTC market in the United States there were approximately
3,800 stocks on the Nasdaq NNM system and 900 on the Small Cap Market.
Some features of the two tiers of NASDAQ.
1. Securities are actually listed on both tiers of Nasdaq; that is, must meet
fairly stringent listing requirements for size, issuer profitability, trading
volume, governance, public disclosure and other factors.
2. Securities traded on these Nasdaq tiers must meet specified minimum
standards for both initial listing and continued listing.
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3. The financial criteria for listing in the Small Cap Market are not as strict as
in the NNM system, although the corporate governance standards for the
two are the same.
4. Small Cap companies often grow and move up to the NNM market. The
NNM issues are more widely known, have more trading volume, and
have more market makers.