Can anyone explain the subtle differences between the different exchange markets? ?

Question

NYSE ?

How does this one differ from the SP500?

And how is AMEX ? How does it compare to NASDAQ ?Is it possible that besides there, there is importance with any of the other hundreds of other exchange markets that make a significant contribution nationally and globally?

Answer 1

the S&P 500 is not an exchange.  It is an index.  Here is a summary of some exchanges though:

1) NYSE  - stocks are traded on the NYSE, and an open-pit auction method is still used, so you see actual human traders on the exchange floor.  NYSE stocks typically have three-letter ticker symbols, and are historically larger companies less high tech than NASDAQ traded stocks.  

2) NASDAQ - the NASDAQ is a computerized exchange created sometime in the 1970s I believe.  It is completely computerized.  There are thousands of NASDAQ traded stocks, including many many tech companies.  Volume on the NASDAQ is now equal to, if not more than volume on NYSE stocks.  

3) AMEX - stock, options, and ETFs are traded on the AMEX.  typically, smaller company stocks are traded on the AMEX relative to the NYSE and NASDAQ.  AMEX uses an automated trading system as well, and has lost volume due to competition from NASDAQ.

4) CBOT/CME - these two exchanges are for derivatives such as options and futures on a huge variety of commodities ranging from uranium futures to trading on hogs to trading on volatility.

there are many many indices out there covering almost every financial sector.  Indices are just stocks or other securities bundled together to measure their performance.  THE S&P 500 includes NASDAQ and NYSE traded companies.  there are indices for mortgage backed securities, or for energy companies.  for many many assets.  too many to write about.  check this old article out about the exchanges though: