20+ Difference between NASDAQ and NYSE

The NASDAQ, or National Association of Securities Dealers Automated Quotations Exchange, is a trading platform where buyers and sellers of stocks may transact business and where investors can access a crucial index reflecting the market’s overall health.

On the other hand, NYSE refers to the New York Stock Exchange. When considering the overall market value of all listed securities, it is by far the biggest stock exchange in the world.

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Comparison Between NASDAQ And NYSE

Parameter	NASDAQ	NYSE
Founded in	The NASDAQ OMX Group began commercial operations in New York City in 1971.	The signing of the Buttonwood Agreement by 24 brokers in 1792 is believed to have sparked the development of the stock market.
Leaders	The total amount of profit that is made in addition to the existing share of the market in terms of percentage.	“Total market capitalization” is the formula used to calculate the value of all stocks and shares traded on the NYSE.
Nature	Even though share prices predispose to volatility, it is not rare for share prices to experience a quick rise. In fact, it is not at all unusual.	Investment prospects favor profitable businesses with stable prices under their current ownership.
Indices	Three distinct indexes comprise the NASDAQ: the NASDAQ-100, the NASDAQ Composite, and the NASDAQ Biotechnology. The most important index maintained by the NASDAQ is known as the NASDAQ-100.	The NYSE consists of three indexes: the Dow Jones Industrial Average, the NYSE Composite Indicator, and the NYSE Equity Indices. The Dow Jones is the most closely watched by investors worldwide.
Perception	Consider investing in expanding high-tech businesses, as they are more likely to be affected by changes in the market’s cost structure.	Put your money into firms and stocks with a history of success and have been there for a considerable amount of time if you want to see a return on your investment.

Major Difference Between NASDAQ And NYSE

What exactly is NASDAQ?

Nasdaq is the largest electronic securities exchange in the world. Since its inception, Nasdaq has been a part of the Financial Industry Regulatory Authority (FINRA), which was formerly known as the National Association of Securities Dealers (NASD) (FINRA).

The term Nasdaq is an abbreviation for “National Association of Securities Dealers Automated Quotations” (FINRA).

The Securities and Exchange Commission (SEC) pushed the National Association of Securities Dealers (NASD) to computerize the secondary market for securities that were not listed on a stock exchange. Hence, the NASD created Nasdaq to do just that.

Key Difference: NASDAQ

The NASDAQ exchange connects buyers and sellers electronically rather than via a central trading floor.
The number of firms listed on the NASDAQ is close to 3000.
The rapid expansion of NASDAQ’s constituents, particularly its technology firms, has led to claims that the stock market’s price swings may be rather dramatic.
Google Inc., Apple Inc., Facebook Inc., and Amazon.com, Inc.
There are a few different indices under the NASDAQ umbrella.
Admission costs between $50,000 and $75,000. There will be a $27,500 annual listing cost.
The NASDAQ CMX group established the exchange in 1971, making it a far more recent entity than the NYSE.
Bob Greifeld runs NASDAQ as its CEO.

What exactly is NYSE?

The New York Stock Exchange (NYSE) in Lower Manhattan is the biggest in the United States.

As of February 2018, the combined market value of the companies trading on the exchange was US$30,1 trillion, making it the largest stock exchange in the world.

In 2013, daily trade volume amounted to over US$169 billion. The NYSE trading floor may be found at the New York Stock Exchange Building, which is easily recognizable at the corner of 11 Wall Street and 18 Broad Street.

Key Difference: NYSE

Although most of the exchange’s business now takes place electronically, the New York Stock Exchange (NYSE) still maintains a physical trading floor in Mahwah, New Jersey.
Nearly 2800 businesses are listed on the NYSE.
It’s often believed that NASDAQ equities are more volatile than NYSE ones. This is because the majority of NASDAQ corporations are quite large and well-known.
IBM, Walmart, Coca-Cola, and Citibank are just a handful.
The NYSE is home to the NYSE 100 and the NYSE Composite.
The price of admission is $500,000. The annual listing charge is capped at $50,000 regardless of the number of shares outstanding.
The New York Stock Exchange (NYSE) opened for business in 1792. Twenty-four brokers formed the company and signed the Buttonwood pact.
Duncan L. Niederauer runs the NYSE as its chief executive officer.

Contrast Between NASDAQ And NYSE

Location:

NASDAQ- At the current day, all commercial transactions on the market take place online using a variety of different kinds of internet connections. This is the case because the internet is widely accessible.

This is true notwithstanding the nature of the company being discussed. Work opportunities may be found in New York City on a single level of the skyscraper known as MarketSite, which is situated in the exact center of Times Square.

NYSE- The skyscraper in New York City’s Financial District on Wall Street that is home to the New York Stock Exchange and serves as the major place of business for the organization is referred to as “the NYSE building.”

This is a widespread term for the structure. The “NYSE building” is sometimes commonly referred to simply as “the NYSE” (NYSE).

How they work:

NASDAQ- The New York Stock Exchange (NYSE) operates as an auction market in which purchases and sales are settled by simultaneously accepting competing bid and ask prices.

The investor’s broker may either place the order verbally with the floor broker or electronically using the NYSE’s Universal Trading Platform (UTP).

Specialists engaged by the companies listing their stocks on the New York Stock Exchange (NYSE) monitor all transactions involving those stocks.

NYSE- There are several distinctions in the NASDAQ. It is not an auction market but rather a market where individuals may buy and sell directly with other traders.

A dealer, also known as a market maker, facilitates trades between buyers and sellers. To execute a deal, stock brokers may either place a phone call to the market maker or use the online execution system.

Process of listings:

NASDAQ- For a company to meet the stringent regulatory standards that are imposed by the NASDAQ and submit an application, a company must have securities that are eligible to be traded on the NASDAQ.

Additionally, the firm must have at least three market makers for its stock and a minimum of 1,250,000 publicly traded shares with a regular bid price of at least $4.

NYSE- For a company to be listed on the NYSE, it must have a prospectus from the most recent shareholder’s meeting, as well as bylaws, stock or bond certificates, annual shareholder reports dating back five years, the most recent Form 10-K, and a timetable for the distribution of shares.

Fees:

NASDAQ- For a firm to have its shares listed on the NASDAQ, the corporation must first pay an application fee that ranges from $50,000 to $75,000. The yearly fees come out to be close to $27,500 on average.

In 2011, the NASDAQ produced $372 million in revenue thanks to listing fees and other business services. This contributed to around 22% of the overall profits that the exchange made in 2011.

NYSE- An application fee of up to two hundred fifty thousand dollars may be needed to list New York Stock Exchange shares. The annual listing fees are fixed at $500,000 regardless of the number of shares that are actually traded on the market.

In 2011, the NYSE generated $446 million in revenue through listing fees and other commercial services, accounting for 17% of that total revenue.

Frequently Asked Questions (FAQs)

Q1. Where on the face of the earth can one discover the very first stock exchange?

The Amsterdam Stock Market (AEX), established in 1602 by the Dutch East India Company and now housed in the country of the Netherlands, is the world’s oldest stock exchange.

The Amsterdam Stock Exchange is currently wholly owned and operated by Euronext.

Q2. What is the name of the stock exchange that now has the status of being the biggest in the whole world?

The overall market capitalization of the firms listed on the New York Stock Exchange (NYSE) still makes it the biggest stock exchange in the world. Market cap is the term used to describe this valuation indicator.

Euronext was the world’s third-largest stock market, behind the Shanghai Stock Exchange and the NASDAQ.

Q3. What exactly is the function of the Nasdaq?

The Nasdaq Stock Market is the world’s second-largest stock exchange, and it is very important to integrate technology into the process of trading stocks and other financial instruments.

Companies who want to list their stocks on a stock exchange in the United States can list their stocks on either the New York Stock Exchange or the Nasdaq.

Q4. Why is the Nasdaq considered so much better than other stock exchanges?

The decision to list a company’s shares on the Nasdaq market may result in several important advantages for the company, two of the most notable of which are cheaper listing fees and lower minimum requirements to qualify for a listing.

The fact that the Nasdaq only allows electronic transactions to take place is seen as a big benefit by many traders as one of the exchange’s many advantages.

Q5. How many companies in their whole are now traded on the Nasdaq?

The National Association of Securities Dealers Automated Quotations, often called the NASDAQ, is an electronic stock exchange that now contains listings for more than 3,300 firms.

The stock exchange in the United States currently handles the largest trading volume; around 1.8 billion transactions occur each and every trading day on this particular stock market.