In the commercial sector, these two leading exchanges have gained great popularity, as they provide the exclusive commercial platform.
If you are also new to this, you may want to know what the best stock exchange is. These two differ in a number of ways, such as the prerequisite for a company to trade on the stock exchange, the rate structure, the type of market, the mode of negotiation, etc. Then, check this article that we have simplified, the comparison for you.
|About||NYSE is the oldest market in the world for the purchase and sale of shares, regulated by the Securities and Exchange Commission.||NASDAQ is an American exchange platform designed to help investors negotiate with shares in a telecommunications network.|
|Owner||Intercontinental Exchange||NASDAQ Inc.|
|Market type||Auction market||Distributor Market|
|Depend on||Specialist||Market maker|
|Number of companies listed||2400||3100|
|Annual quota||$ 500,000||$ 27,000|
Introduction to NYSE
The New York Stock Exchange or NYSE, also known as 'The Big Board' is the market based on leading stocks in the world, launched more than 200 years ago, in 1792. It began as a private organization, which later turned its state into public Entity in 2005. It is the oldest stock exchange in the world, whose quotation requirements are quite strict, because only large and financially secure companies qualify to quote. In NYSE an auction is held every day on the trading floor.
The system of brokers and specialists is responsible for trade, where brokers act as a link between the investor and the market, while specialists play two main roles, first, to match purchase and sale orders, if current prices They allow, and second, if they cannot match the customer's requirements, then they buy and sell orders on their own.
Introduction to NASDAQ
NASDAQ, a short colloquial term for the National Association of Securities for Automated Distributor Quotation, is an electronic market. It previously began as a stock exchange based in the US. UU., It is an option of the leading companies worldwide due to its growth, market depth, liquidity and future-oriented technologies. It allows investors to trade with securities in an automatic, transparent and electronic system.
There are some financial requirements that companies must meet to be included in NASDAQ. As the trade is done electronically, the exchange is called the merchant market due to the purchase and sale of shares by the broker through the market maker.
Key differences between NASDAQ and NYSE
The most significant differences between NASDAQ and NYSE are analyzed in the following points:
- NYSE is the oldest market in the world for the purchase and sale of shares, regulated by the Securities and Exchange Commission. NASDAQ is an American exchange platform designed to help investors negotiate shares in a telecommunications network.
- NYSE is the oldest stock exchange in the world, created in 1792. On the other hand, NASDAQ has been established only a few decades ago, in 1971.
- Intercontinental Exchange owns the New York Stock Exchange, while NASDAQ is owned by NASDAQ Inc.
- NYSE is an auction market, where auctions are held every day on the stock exchange. Unlike NASDAQ, it has a substantial human participation, making it a distributor market.
- NYSE is a land-based stock market. Unlike NASDAQ, where the trade is done electronically.
- On the New York Stock Exchange, the specialist is responsible for negotiating on the stock exchange. On the contrary, NASDAQ more than 500 market makers compete to make markets.
- There are more than 2400 companies listed on the New York Stock Exchange. Against this, NASDAQ lists more than 3100 companies.
- The annual fee charged by NYSE is $ 500,000. In contrast, the annual fee charged by NASDAQ is around $ 27,000.
In the end, we can conclude that there is a neck-to-neck competition in the two exchanges. In terms of market capitalization, NYSE is the largest stock exchange, but when we talk about billing, NASDAQ outperforms other markets. While NYSE is the oldest stock exchange, NASDAQ is the fastest growing stock exchange in the world.