Similarities

• The main similarity between AMEX and NASDAQ is that they are both auction markets that are greatly controlled by investors' orders for shares. Both handle stocks by the millions for a wide variety of individuals and organizations. Although the AMEX and NASDAQ both provide a marketplace for the trading of securities, the manner in which they provide these marketplaces have their nuances.
  
  

Differences in Trading Methods and Investors

• The AMEX uses the floor exchange system that allows individuals a more personal touch while transacting their business. Some may find it a slower method of operation because AMEX specialists are restricted to the limit orders and the price updating method is somewhat delayed, since they are not allowed to trade for themselves or trade above the limit order. NASDAQ, on the other hand, runs completely electronically, meaning that any change in stock prices is instantly updated. There is no central limit order for trading and the speed of trade on NASDAQ is very fast-paced, thus more valuable to high-volume traders and technology-based companies as compared to the AMEX floor trading.
  
  

Daily Volumes Traded

• The daily volumes of stocks exchanged in these markets are drastically different. The automated, over-the-counter nature of the NASDAQ encourages a larger volume of stock exchanges than the floor-based trading format used by the AMEX. There has been a gradual shift by companies and investors from the AMEX to NASDAQ because of this difference. The advent of online stocks trading for individuals also increases the activity on the NASDAQ because there is a reduced need for a stock broker to trade in the markets, thus increasing NASDAQ volumes.
  
  

Listing Standards

• Listing standards that companies must meet are another difference between the AMEX and NASDAQ. The AMEX requires that a company have at least 500,000 shares outstanding, while the NASDAQ requires that 1.25 million shares are available to be traded. The minimum stock price for a company listed on the AMEX is $2 per share, while the NASDAQ requires a minimum share price of $5 per share.