A stock exchange can be defined as a corporation or organization that provides the facilities for stock brokers and traders to trade securities,such as stocks and mutual
funds, and has registered with the SEC under Section 6 of the Securities Exchange Act of 1934. In order for a security to be traded on the stock exchange, it must be listed there or be a member of
the particular exchange. The three major U.S. stock market exchanges are the New York Stock Exchange (NYSE), Nasdaq, and the American Stock Exchange (AMEX).
There are currently ten securities exchanges registered with the SEC under Section 6(a) of the Exchange Act as national securities exchanges:
American Stock Exchange
Boston Stock Exchange
Chicago Board Options Exchange
Chicago Stock Exchange
International Securities Exchange
The Nasdaq Stock Market LLC
National Stock Exchange (formerly the Cincinnati Stock Exchange)
New York Stock Exchange
NYSE Arca, Inc. (formerly the Pacific Exchange)
Philadelphia Stock Exchange
Certain exchanges are also registered with the SEC through a notice filing under Section 6(g) of the Exchange Act for the purpose of trading security futures.
There are also two exchanges that the SEC has exempted from registration as national securities exchanges on the basis of a limited volume of transactions:
Arizona Stock Exchange
virt-x plc (formerly known as Tradepoint)
Over the Counter Markets
The National Association of Securities Dealers (NASD) was registered in 1938 as a national securities association under Section 15A of the Securities Exchange Act of 1934 and regulates
broker-dealers that operate in the over-the-counter (OTC) market. Many equity securities, corporate bonds, government securities, and certain derivative products are traded in the OTC market. The OTC
Bulletin Board and the Pink Sheets, for example, operate within the OTC market.
OTC Bulletin Board
The OTC Bulletin Board (OTCBB) is an electronic inter-dealer quotation system that displays real-time quotes, last-sale prices, and volume information for many over-the-counter securities that are
not listed on a national securities exchange. The NASD oversees the OTCBB.
Under the OTCBB's eligibility rule, companies that want to have their securities quoted on the OTCBB must file current financial reports with the SEC or with their banking or insurance regulators.
For more information, you may view the OTCBB's website at www.otcbb.com.
Pink Sheets
The "Pink Sheets" is an electronic inter-dealer quotation system that displays quotes and last-sale information for many OTC securities. The name "Pink Sheets" comes from the color of paper used when
the sheets circulated in hard copy. The Pink Sheets are published by Pink Sheets LLC, a privately held company. Pink Sheets LLC is not registered with the SEC.
The Pink Sheets does not require companies whose securities are quoted upon its systems to meet any listing requirements. With the exception of a few foreign issuers, the companies quoted in the Pink
Sheets tend to be closely held, extremely small and/or thinly traded. Most do not meet the minimum listing requirements for trading on a national securities exchange. Many of these companies do not
file periodic reports or audited financial statements with the SEC. As such, it may be difficult for the public to find current, reliable information about companies quoted through the Pink Sheets.
For further information, you may view the Pink Sheets' website at www.pinksheets.com.