2. Not Your Grandma’s Market

The change in the investment landscape wrought by Regulation National Market System (NMS) had occurred so quickly that it escaped the notice of the average investor. He had not been asleep like some Rip Van Winkle; but neither had he been paying close attention to what was going on. As far as he was concerned, the market was the same as it had always been. In his mind, there were two major exchanges, the New York Stock Exchange (NYSE) or “Big Board,” and the NASDAQ. In actuality, there were about a dozen exchanges and several hundred other trading venues. The retail investor submitted his order to a broker and received a trade confirmation within minutes. The investor didn’t consider that the NYSE-listed stock he ...

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