Invest in the United States: The Stock Market
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The United States of America is one of the world's leading magnets for foreign investors, as well as being home to two of the word's biggest stock exchanges. There are many factors that make the US a prime location for investments, some of which are:
- Robust capitalist market and democratic environment
- Economic stability
- No internal trade barriers
- Good economic policies
- Advanced communications systems
US Stock Market
The United States stock market is composed of various stock exchanges and over-the-counter markets. Two of the world's biggest stock exchanges, the New York Stock Exchange (NYSE) and the NASDAQ, are found in the US. Other US exchanges include the Boston Stock Exchange, the Chicago Stock Exchange, the Philadelphia Stock Exchange (PHLX), and the American Stock Exchange (AMEX).
As of the year 2000, the largest sector in the US market is information technology (IT), with banks and finance running second and pharmaceuticals coming in at third. Other important sectors are telecommunications, retailers, and oil and gas.
The NYSE is the world's largest and most prestigious stock exchange. It is a physical exchange, meaning most of the transactions are done face-to-face on a real trading floor. The NYSE is home to America's largest companies, such as General Electric, Coca-Cola, Wal-Mart, and Citigroup. People who want to buy stable, blue chip (and more expensive) stocks usually invest in the NYSE.
"NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". The NASDAQ is the world's third largest stock exchange, and is the world's first electronic/virtual stock market. Stock trading is carried out by computers. The NASDAQ 100 is a popular stock market index that lists the 100 largest companies listed on the NASDAQ. As of May 22, 2006, the index includes well-known IT companies such as Google, Yahoo, Microsoft, Amazon, Apple, Cisco, Dell, Verisign, eBay, and Intel. People who want to buy growth-oriented (albeit more volatile) stocks such as those issued by high-tech firms will find the NASDAQ best suited for their needs.
Next: Investing in the United States: Treasury Bonds
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