Business Glossary

organized national securities exchanges located outside of New York City and registered with the Securities and Exchange Commission They include the Boston, Chicago, National, Pacific, and Philadelphia stock exchanges. These exchanges list both regional issues and many of the securities listed on the New York exchanges. Companies listed on the new york stock exchange, the American Stock Exchange, and the NASDAQ Stock Marketbroaden the market for regional exchanges' securities. Using the Intermarket Trading System (ITS), regional exchanges can see competing prices for the securities traded on video screens. Regional exchanges have increased their competitive positions by adopting electronic trading and clearing systems, demutualizing and adding products such as Exchange-Traded Funds

organized, national exchanges where securities, options, and futures contracts are traded by members for their own accounts and for the accounts of customers. In the United States, the stock exchanges are registered with and regulated by the Securities and Exchange Commission (SEC); the commodities exchanges are registered with and regulated by the Commodity Futures Trading Commission (see regulated commodities); where options are traded on an exchange, such activity is regulated by the SEC.

stocks, bonds, subscription rights, subscription warrants, stock option, index options, and other derivative products are traded on various stock exchanges in the United States as well as over the counter. commodity futures, futures option, and financial future are traded on commodities exchanges and also over the counter.

Exchanges listing basic securities-stocks, bonds, rights, warrants, and options on individual stocks-are described in more detail under their respective entries. See below for a description of their futures and other options products:American Stock Exchange (New York) stock index options: Airline Index, China Index, Defense Index, Gold Bugs Index, Test Symbol, Computer Technology, Consumer Index Opt., Cyclical Index Opt., Deutschebank Energy, Eurotop 100 Index, Hong Kong Index, Internet Index, Major Market Index, Min Nasdaq 100, Ms Commodities Index, Nasdaq Biotech Index, Nasdaq 100 Index, Natural Gas Index, Oil Index, Spade Defense Index, The Biotechnology Index, The Broker Dealer Index, The Disk Drive Index, The Japan Index, The Microcap Index, The Morgan Stanley Index, The Pharma Index.
Chicago Board of Trade (Chicago) futures: corn, oats, rough rice, soybeans, soybean oil, soybean meal, wheat, mini-sized corn, mini-sized soybeans, mini-sized wheat, South American soybeans; silver (1,000 ounces, 5,000 ounces), gold (33.2 ounces, 100 ounces); ethanol; U.S. Treasury Bonds, U.S. Treasury notes (10-year, 5-year, 2-year), 30-Day Fed Funds, 10-Year Municipal Note Index, Interest Rate Swaps (10- year, 5-year), mini-sized Eurodollars, Bund, Bobl, Schatz; Dow Jones Industrial Index, mini-sized Dow Jones Industrial Index, Total Market Index, Dow Jones-AIGCI. Options: corn, oats, rough rice, soybeans, soybean oil, soybean meal, wheat; U.S. Treasury bonds, U.S. Treasury notes (10-year, 5-year, 2-year), 30-Day Fed Funds, Flexible U.S. Treasury bonds, Flexible U.S. Treasury notes (10-year, 5-year, 2-year), Interest Rate Swaps (10-year, 5-year); Dow Jones Industrial IndexSM, mini-sized Dow Jones Industrial Index.
Chicago Board Options Exchange (Chicago): equity options, index options, Exchange-Traded Funds (ETFs) options, interest rate options, structured product options, Long-Term Equity AnticiPation Securities (LEAPS), and Flexible Exchange (FLEX) options. CBOE trades options on approximately 1,700 equities, 44 indexes, 54 ETFs, and 4 interest rate products. CBOE introduced options and futures on 12 newly created sector indexes called "PowerPacksSM" in July 2005. The dozen individual sector indexes included in the family of CBOE PowerPacks are banks, biotechnology, gold, Internet, iron and steel, oil, oil services, pharmaceuticals, retail, semiconductor, technology, and telecom indexes. Among the most actively-traded options on indexes at CBOE are S&P 500 Index (SPX); S&P 100 Index (American-Style Exercise, OEX and European-Style Exercise, XEO); S&P Depositary Receipts (SPDRs); Dow Jones Industrial Average (DJX); DIAMONDS Trust, Series 1 (DIA); Nasdaq-100 Index; CBOE Mini-NDX Index (MNX); Nasdaq-100 Index Tracking Stock (QQQ), Russell 2000 Index (RUT), iShares Russell 2000 Index Fund (IWM); Semiconductor HOLDRs Trust (SMH) and iShares Lehman 20+Year Treasury Bond Fund (TLT). Products traded on the CBOE Futures Exchange include futures on: CBOE Volatility Index (VX), CBOE S&P 500 Three Month Variance (VT), CBOE China Index (CX), Mini-Russell 2000 Index (RT), Russell 1000 Index (RN), CBOE DJIAVolatility Index (DV), and CBOE PowerPacksSM Indices.
Chicago Mercantile Exchange (Chicago) foreign currency futures and options: Australian dollar, Brazilian real, British pound, Canadian dollar, Czech Koruna, U.S. dollar index, Euro, E-mini Euro, Hungarian forint, Japanese yen, E-mini Japanese yen, Mexican peso, New Zealand dollar, Norwegian Krone, Polish Zloty, Russian ruble, South African rand, Swedish Krona, Swiss franc. Cross-rate futures and options: Euro FX/Australian dollar, Euro FX/Canadian dollar, Euro FX/Hungarian Forint, Euro FX/Norwegian Krone, Euro FX/Swedish Krona, Australian dollar/Canadian dollar, Canadian dollar/Japanese yen, Australian dollar/Japanese yen, Australian dollar/New Zealand dollar, British pound/Japanese yen, British pound/Swiss franc, Swiss franc/Japanese yen, Euro FX/British pound, Euro FX/Czech Koruna, Euro FX/Japanese yen, Euro FX/Polish Zloty, Euro FX/Swiss franc. Foreign currency-denominated interest rate futures and options: Euroyen, 91-day CETES, 28-day TIIE. Interest rate futures and options: Eurodollar, Eurodollar FRA, 13-week U.S. Treasury bill, 1-month LIBOR (London Interbank Offer Rate), swap futures, turn rate futures, Japanese government bonds, CPI futures, mid-curve options. Stock index futures and options: Standard & Poor's 500, E-Mini S&P 500 Stock Price Index, Standard & Poor's MidCap 400, Nikkei 225 Stock Average, Goldman Sachs Commodity Index, Russell 2000 Stock Price Index, S&P 500/BARRAGrowth Index, S&P 500 BARRAValue Index, NASDAQ 100 Index, E-mini NASDAQ Composite, S&P SmallCap 600, SPCTR Futures, X-Funds, Futures on ETFs E-mini NASDAQ- 100, E-mini S&P 500 MidCap 400, E-mini Russell 1000, E-mini Russell 2000. Alternative investment products: U.S. monthly weather, U.S. seasonal weather, European monthly weather, European seasonal weather, Asia-Pacific monthly weather, Asia-Pacific seasonal weather, ethanol. Agricultural futures and options: live cattle, feeder cattle, lean hogs, frozen pork bellies, milk (Class III & IV), nonfat dry milk, butter, random-length butter, cheese, DAP, UAN, urea.
Kansas City Board of Trade (Kansas City) futures and options: wheat, Value Line Index. Futures: wheat, Value Line Index.
Minneapolis Grain Exchange (Minneapolis) futures and options: hard red spring wheat, Hard Red Winter Wheat Index (HRWI), Hard Red Spring Wheat Index (HRSI), Soft Red Winter Wheat Index (SRWI), National Corn Index (NCI), and National Soybean Index (NSI).
New York Board of Trade agricultural futures and options contracts: cocoa, Coffee "C," Cotton No. 2, ethanol, frozen concentrated orange juice (FCOJ), Sugar No. 11, Sugar No. 14, and pulp. Index and currency marketplace: futures and options on NYSE Composite Index, Reuters/Jefferies CRB Index, Russell 1000, 2000, and 3000 Indexes, the U.S. Dollar Index, and 32 cross-rate currency contracts.
New York Mercantile Exchange (New York) NYMEX Division: futures and options: light, sweet crude oil, New York Harbor unleaded gasoline, heating oil, Henry Hub natural gas, platinum. Futures: palladium. COMEX Division: Futures and options: gold, silver, copper, and aluminum.
Pacific Exchange (San Francisco) Options, LEAPS, and FLEX options on more than 1,800 stocks and ETFs.
Philadelphia Stock Exchange (Philadelphia): currency options: Australian dollar, British pound, Canadian dollar, Euro, Japanese yen, Mexican peso (customized contracts only), Swiss franc, U.S. dollar (customized contracts only); SPDR Options; sector index options: capital markets, insurance, mortgage finance, regional bank, defense, drug, Europe, gold and silver, housing, oil service, semiconductor, utility, media and entertainment, casino gaming, coal producers, footwear and athletic, investment managers, oil exploration and production, semiconductor capital equipment, semiconductor device, specialty retail, steel producers, Internet, bio-clinical trials; FLEX options, LEAPS, HOLDRS; currency futures.

one of the largest options exchanges in the United States. Located at 86 Trinity Place in lower Manhattan, AMEX was known as the Curb Exchange until 1921. The exchange pioneered index options and trades options on 25 broad-based and sector indices. It is a leader in the development of Exchange-Traded Funds (ETFs), and it calculates and publishes a wide variety of indices to support index-based products such as ETFs, index options, and structured products. The Amex is home to more than 700 companies and trades 20 corporate bonds. The Amex was one of the pioneers in index options and today trades put-and-call options on broad market, industry sector, and international indexes. Index options make it possible for investors to "trade" an entire market to seek either profit or protection from price movements in a stock market as a whole or in broad segments of a particular market. The exchange trades more than 160 ETFs; 17 Holding Company Depositary Receipts (HOLDRs); and more than 350 structured products such as notes linked to currencies, equities, and indexes. The two main indices tracking Amex stocks are the Amex Composite Index and the Amex Major Market Index. Amex derivatives include Diamonds, which tracks the Dow Jones Industrial Average and Standard & Poor's Depositary Receipts (SPDRs), which track the S&P 500 index and are called Spiders. In 2004, the National Association of Securities Dealers (NASD) transferred control of the Amex back to its membership and elected a new board. The board is composed of 15 members, nine independent and six industry governors. The Amex's equity market is a centralized, specialist-based auction market, and the exchange is currently making upgrades to its trading technology, which includes the Amex New Trading Environment (ANTE) for options. The exchange expects to have the upgrades fully implemented by the first quarter of 2006, in order to meet Regulation NMS compliance requirements. As a result, the Amex's trading environment will be largely automated and expects to have the speed of an electronic communication network, but will still retain its human-based open outcry system of trading for those investors who desire it. Trading hours: 9:30 A.M.-4 P.M., Monday through Friday. www.amex.com.

rules that must be met before a stock is listed for trading on an exchange. Among the requirements of the New York Stock Exchange: a corporation must have a minimum of one million publicly held shares with a minimum aggregate market value of $16 million as well as an annual net income topping $2.5 million before federal income tax.

national stock exchange that is located at the corner of Broad and Wall Streets in New York City; often called the Big Board. It has a central trading location where securities are bought and sold in an auction market by brokers acting as agents for the buyer and seller. It is governed by a board of directors consisting of one-half exchange members and one-half public members. The NYSE is the largest exchange and generates the most dollar volume in large, well-known companies. Its listing requirements are the most restrictive. For a company to be listed on the NYSE for the first time, for example, the corporation must have at least 2000 stockholders owning 100 shares, and its aggregate market value must be $18 million or more.

stock exchange with the second biggest volume of trading in the United States, located at 86 Trinity Place in downtown Manhattan. Stocks and bonds traded on the Amex are mainly those of small to mediumsize companies, as contrasted with the huge companies whose shares are traded on the New York Stock Exchange. Stock options are also traded on the Amex, which is sometimes referred to as the Curb.

national stock exchange that is located at the corner of Broad and Wall Streets in New York City; often called the Big Board. It has a central trading location where securities are bought and sold in an auction market by brokers acting as agents for the buyer and seller. It is governed by a board of directors consisting of one-half exchange members and one-half public members. The NYSE is the largest exchange and generates the most dollar volume in large, well-known companies. Its listing requirements are the most restrictive. For a company to be listed on the NYSE for the first time, for example, the corporation must have at least 2000 stockholders owning 100 shares, and its aggregate market value must be $18 million or more.

1. security that is not listed and traded on an organized exchange.
2. market in which securities transactions are conducted through a telephone and computer network connecting dealers in stocks and bonds, rather than on the floor of an exchange.

Over-the-counter stocks are traditionally those of smaller companies that do not meet the listing requirements of the New York Stock Exchange or the American Stock Exchange. In recent years, however, many companies that qualify for listing have chosen to remain with over-the-counter trading, because they feel that the system of multiple trading by many dealers is preferable to the centralized trading approach of the New York Stock Exchange, where all trading in a stock has to go through the exchange specialist in that stock. The rules of over-the-counter stock trading are written and enforced largely by the National Association of Securities Dealers (NASD), a self-regulatory group. Prices of over-the-counter stocks are published in daily newspapers, with the National Market System stocks listed separately from the rest of the over-the-counter market. Other over-the-counter markets include those for government and municipal bonds.