A stock exchange is an organized market for the buying and selling of financial instruments known as securities, which include stocks, bonds, options and futures. Most stock exchanges have specific locations where trades are completed. In order for a company's shares to be traded on these exchanges, they must be listed, and to be listed, the company must meet certain requirements. But not all stocks are bought and sold on a specific site. These securities are defined as unlisted. Many of these stocks are traded over the counter, i.e. via telephone or computer. Major stock exchanges in the United States include the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX), both in New York City. However, many more companies list their shares on the NYSE than on the AMEX. Nine smaller regional exchanges operate in Boston, Massachusetts; Cincinnati, Ohio; Chicago, Illinois; Los Angeles, California; Miami, Florida; Philadelphia, Pennsylvania; Salt Lake City, Utah; San Francisco, California; and Spokane, Washington. Furthermore, most industrialized countries in the world have stock exchanges. Among the largest international exchanges are those in London, England; Paris, France; Milan, Italy; Hong Kong, China; Toronto, Canada; and Tokyo, Japan. These exchanges all have a central location for trading. The major over-the-counter market in the United States is the Nasdaq stock market (formerly the Automated Quotation System of the National Association of Securities Dealers [NASDAQ]). The European Association of Securities Dealers' Automated Quotation System (EASDAQ) is the primary over-the-counter marketplace for the European Union (EU). Stock market transactions involve the activities of brokers and intermediaries. These individuals facilitate the buying and selling of financial assets. Brokers execute trades on behalf of clients and receive commissions and fees in exchange for matching buyers and sellers. Dealers, on the other hand, buy and sell from their own portfolios (inventories of securities). Traders earn income by selling a financial instrument at a price higher than the price paid by the dealer for the instrument. Some exchange participants perform both roles. These broker-dealers sometimes act solely as the client's agents and other times buy and sell from their own inventory of financial assets. The Importance of Stock Exchanges Stock exchanges play important roles in national economies. More importantly, they encourage investment by providing places for buyers and sellers to trade securities. This investment, in turn, allows companies to obtain funds to expand their operations. Companies issue new securities in what is known as the primary market, usually with the help of investment banks (Investment Banking).