The New York Stock Exchange and the Nasdaq Stock Exchange
The name of the stock exchange or the place where the transaction occurred, urges brokers, investors and dealers to try to buy and sell shares of the image of the busy floor The However, a stock exchange may be a real physical space because we trade through a network of telecommunications networks or virtual places. Two of the two well-known examples of the two stock exchanges are the New York Stock Exchange (NYSE), which is a physical stock exchange and Nasdaq is an online network. Most of the transactions in the Americas and around the world take place on the two stock exchanges, which are well-known names for stock traders. However, there are some fundamental differences between the two.
New York Stock Exchange has big companies such as Coca-Cola, Wal-Mart and General Electric listed; instead, Nasdaq lists "technology giants" such as Microsoft, Cisco and Oracle.
The place where the actual transaction occurred is different for the two exchanges. For Nasdaq, the deal is virtual or through an online network. Investors and stock traders trade and interact through the Internet to virtually purchase and sell stocks. Therefore, Nasdaq does not exist trading floor. On the other hand, the New York Stock Exchange has real investors and brokers on the floor of the exchange and handles them in physical space.
The New York Stock Exchange is known as the "auction market"; this is because investors compete for shares on the floor as in the auction, and the share is the lowest bidder. Nasdaq is known as the "dealer market"; here, the deal is not through the auction, but through the dealer and seller to interact with the dealer.
As can be seen from the example, Nasdaq is home to many high-tech companies. The highest listing fee for the exchange is $ 150,000 and the highest continuous listing fee is $ 60,000 per year. Therefore, the stocks listed here are more "growth-oriented". Believe that the New York Stock Exchange's stock is less volatile and more stable. The highest listing fee for the exchange is $ 250,000 and the highest continuous listing fee is $ 50,000 per year. Although a company's stock is not much different on the New York Stock Exchange or Nasdaq, the company will consider the cost and listing requirements before making a decision.
The stock exchange on both exchanges also needs to be controlled. In Nasdaq, the job was done by the "market maker". This is a very important role in virtual trading, in addition to ensuring good traffic, market makers must also try to create a market demand for the sale of stocks in Nasdaq. In the New York market, this role is played by "experts". Experts can only help maintain stock trading in such physical transactions without having to create stock demand.
Nasdaq is a publicly traded exchange, while the New York Stock Exchange was privately traded by March 2006. At the same time, the New York Stock Exchange is also listed. At present, this is no longer the difference between the New York Stock Exchange and Nasdaq, because both are publicly traded.