Money from buyers who want part ownership in the company at an agreed-upon price is equity. When someone buys stock, she gets to share in the company s future earnings and the company gets her cash to spend on projects. By auctions or licensed dealer sales, stock exchanges centralize sales around the world and keep equities circulating as prices and conditions change. Buyers and sellers don't yell out their requests or wave little pieces of paper. Instead, a computer network displays trades.
Buyers can place bids and sellers can check prices from computer workstations.
Many high-tech firms, including Microsoft, Intel, Sun, and Apple, prefer this method. Since 1996, it has had to limit orders with every trade. They believe they can better challenge the NYSE by pooling their resources. Joining these two exchanges could blend the best of both worlds. Under the proposed merger, the National Association of Securities Dealers would buy all 864 AMEX seats and run both exchanges, adding new electronic features.