So...I spent some time locating a group of words that normally appear together. I have seen these acronyms over and over on various Stock Market web sites that I've traveled to.

Remember...all I knew before I started was that the New York Stock Exchange is located in New York. Using a hardcover book, the Wall Street Dictionary, I located the following definition for the NYSE:

"The largest stock exchange in the United States with over 1,500 security listings."

While traveling deeper and deeper into this monster, I've found that several glossaries with several different ways of explaining various terms are of benefit to me. BUYandHOLD has a glossary of terms and I also located another online web site glossary, InvestorWords. I did bookmark both of these sites for a quick recheck whenever I forgot the definition of a term or word.

I further learned that the NYSE is the longest standing and most famous place that the trading of shares occurs. I did spend some time there looking at different areas of the site.

It appears to me that some of the largest companies comprise the NYSE. Some examples are Coca-Cola, Avon, Blockbuster, Campbell's Soup, General Mills, and K Mart Stores...but to name a few of the 1,500 security listings. The complete list can be accessed here.

Next is AMEX-The American Stock Exchange. My [Wall Street Dictionary] provided this definition: "The second-largest stock exchange in the United States. Otherwise known as Amex, the exchange is located at 86 Trinity Place in downtown Manhattan. The Amex tends to specialize in securities of slightly smaller capitalization".

"Dictionaries can be very useful; but it's important to remember that dictionaries (like all publications) can become 'dated' very quickly - especially in regards to the financial world. As of the posting of this article on 4/13/00, the NYSE contains about 3,025 listings."

I'm guessing that these companies are not as large as those listed at the NYSE. I reviewed the web site for the American Stock Exchange. I also located a Web page for the companies listed with the American Stock Exchange. I wasn't as familiar with these companies as I was with the companies listed at the NYSE.

And finally, the NASDAQ. The acronym stands for the National Association of Securities Dealers Automated Quotations. My dictionary provided the following definition:

" A national computer network through which securities dealers execute and post transactions as well as record prices. The NASDAQ is the major method of over-the-counter trading".

Huh? I said to myself.

I was fine with the definition until I ran into the "over-the-counter"(OTC) trading. Back to my dictionary for the following definition of "over-the-counter" or OTC:

"The market for securities that are not listed on one of the major exchanges. The NASDAQ provides prices for over-the-counter securities.

This felt like such a circular definition to me so I went somewhere else for a different definition.

I found a different perspective for [over-the-counter] at BUYandHOLD glossary. They defined OTC Stock as "a security listed to trade on the NASDAQ over-the-counter (OTC) market. These securities are listed in several tiers, including National Market System ("NMS"), Small Capital Market ("SCM"), Bulletin Board Securities and Pink Sheet securities."

Feeling as if I'm going to scream, I find that the National Market System, per InvestorWords.com is defined as "the trading system for over-the-counter stocks under the sponsorship of NASD and NASDAQ. Also, the trading systems where prices for stocks and bonds on the NYSE and regional exchanges are listed simultaneously."

Okay Moms...one more definition and I think I'm ready to pull this whole "nightmare" together. Didn't I promise myself somewhere that this was going to be fun???

As per InvestorWords.com again, still working on the tiers of the NASDAQ over-the-counter market, the Small Capital Market ("SCM") is defined as "securities of smaller, less-capitalized companies (small caps) that do not qualify for inclusion in the NASDAQ National Market.

Yahoo! Success! I think I've got it. Let me see if I can rephrase this in "normal words" to help me understand the technical terms.

NASDAQ is a computer network, i.e., ALL listing, trading, buying, and selling is done through electronic means.

Now...there are some securities that are not listed on the NYSE, AMEX, or other major exchanges. These securities can be bought, sold, and traded on the NASDAQ, electronically. As a group, those companies that are not listed elsewhere are called over-the-counter (OTC) securities.

Under the heading of over-the-counter (OTC) is a system called The National Market System "NMS" where the prices of stocks and bonds from the NYSE and others are listed along with the prices of the NASDAQ securities.

And included in this listing are Small Cap Markets "SCM" which include smaller NASDAQ securities that do not qualify for the national NASDAQ.

I have found that if I read and reread...this information finally goes from my short-term memory into long-term memory...and does begin to make some sense. I would have bolted before... because it all seems so confusing. But...I'm slowing down and learning to be patient.

Next week I'll share what I've learned about the Dow and Tom Brokaw.

Thank you for joining me,

Joyce