There are many different stock markets in the United States that provide citizens with many financial opportunities to invest their money. The three largest stock markets are the American Stock Exchange (AMEX), National Association of Securities Dealers Automated Quotation System (NASDAQ), and the New York Stock Exchange (NYSE) (Morah, “Securities Markets in the U.S.A”). These three stock exchanges are very differential and establish the common types of stock markets. AMEX uses “Exchange-Traded Funds,” a type of marketable security that handles commodities, indexes, commodities, and bonds as “index funds” (Hayes, “Exchange-Traded Fund”). This type splits possession of assets into fund shares that when bought, entitle investors to a portion of profits such as earned interest (Hayes, “Exchange-Traded Fund”). NASDAQ is entirely computerized and electronically managed and evolves with ever-growing technology (Morah, “Securities Markets in the U.S.A”). NYSE, the most popular, is a stock market based in New York that uses floor trading and electronic systems (Morah, “Securities Markets in the U.S.A”). …show more content…
One element that decides the position of the stock market is interest rates due to their effect on the total money spent in the economy. Another element is supply and demand due to its influence on stock prices. Most of these factors involve changing the confidence of investors in buying stocks. A significant issue that is taken into consideration when investing is economic inflation or deflation (Investopedia, “Key Factors). Other concerns include natural disasters, corporate/government performance data, technological changes, fiscal and monetary policy, and foreign conflicts (Investopedia, “Key Factors). Technological changes in particular impact entirely computerized stock exchanges such as NASDAQ the