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Exchange

A marketplace where stocks can be traded. The two biggest exchanges are the New York Stock Exchange and the Nasdaq. The American Stock Exchange (AMEX) used to be the main alternative to the NYSE, but now it lists only small- and mid-cap stocks, and gets most of its business from trading options and similar financial instruments. Stocks that are not traded on any exchange are called “over-the-counter” stocks, and they tend to be much riskier and more volatile than listed stocks.

 

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