EDUCBA

EDUCBA

MENUMENU
  • Free Tutorials
  • Certification Courses
  • 250+ Courses All in One Bundle
  • Login

NASDAQ vs NYSE

By Madhuri ThakurMadhuri Thakur

Home » Finance » Blog » Economics » NASDAQ vs NYSE

NASDAQ-vs-NYSE

Difference Between NASDAQ vs NYSE

The following article provides an outline for NASDAQ vs NYSE. NASDAQ, an abbreviation for the National Association of Securities Dealers Automated Quotations, is a popular index in the Americas and is known as a dealers market.

NYSE stands for New York Stock Exchange and is known as an auction market. NYSE is one of the largest markets in America and NYSE is a leader in accrued market cap of the listed companies

Start Your Free Investment Banking Course

Download Corporate Valuation, Investment Banking, Accounting, CFA Calculator & others

NASDAQ and NYSE are two of the major index and trading platforms in the world. Apart from the similarity in terms of volume and market cap size, there are a lot of differences between these two. Most of the major companies in America are listed on these exchanges.

Head to Head Comparison between NASDAQ vs NYSE (Infographics)

Below are the top 14 differences between NASDAQ vs NYSE

NASDAQ-vs-NYSE-info

Key Differences Between NASDAQ vs NYSE

Let us look at the key differences between NASDAQ vs NYSE as below:

  • The fundamental difference between NASDAQ and NYSE is the way in the way in which they operate. NYSE is an auction-based market, and the system is such that the buyers and sellers enter bids at the same time. The highest price reflected on the trade is the maximum price that the buyer is used to pay and the lowest price that a seller will accept. On the other hand, the dealers market is where multiple dealers punch in their prices when they are willing to buy or sell the stock.
  • Both these institutions are based in New York. However, there is a huge difference in the way they trade. NYSE retains a physical trading floor, and most of the trading and transactions take place in Mawah, based in New Jersey. On the other hand, NASDAQ does not have any physical trading floor and operates directly with investors and market makers.
  • The total number of listings on NYSE is around 2800 companies while on the NASDAQ there are around 3000 companies.
  • The general perception is that more volatile stocks are found on NASDAQ than on NYSE. This is because NASDAQ contains companies that are established and old. A few examples are IBM, Walmart, Coca-cola, Citi Bank. On the other hand, NASDAQ is said to have fast-growing volatile companies, mostly tech businesses that have the potential of large price movements. Stocks include Google, Apple, Facebook, and Amazon.
  • Low cost is required to list a company on NASDAQ as compared to NYSE. This is the reason why there are more companies listed on the NASDAQ than on NYSE.
  • NASDAQ includes NASDAQ composite, NASDAQ 100, and NASDAQ biotechnology, while NYSE includes NYSE 100 and NYSE Composite
  • Entry fee is ~$50,000 to $75,000. The total yearly listing fee comes out to be $27,500. The entry fee is ~$500,000. The total yearly listing fee is based on the total number of shares, and the cap is at $50,000.
  • NASDAQ was founded in 1971 and is comparatively younger than NYSE.The NASDAQ CMX group founded itp. NYSE was founded in 1792. It was founded by 24 brokers who signed the Buttonwood agreement
  • The CEO of NASDAQ is Bob Greifeld and the CEO of NYSE is Duncan L. Niederauer

NASDAQ vs NYSE Comparison Table

Let’s discuss the top comparison between NASDAQ vs NYSE

Basis of Comparision

NASDAQ

NYSE

Acronym NASDAQ stands for National Association of Securities Dealers Automated Quotations NYSE stands for New York Stock Exchange
Type of Market NASDAQ is a dealers market NYSE is an auction market
Founded NASDAQ was founded in 1971 and is comparatively younger than NYSE. It was founded by the NASDAQ CMX group. NYSE was founded in 1792. It was founded by 24 brokers who signed the Buttonwood agreement
Market Capitalization The total market cap of NASDAQ is 11 trillion The total market cap of NYSE is 21.3 trillion
Location New York City and Marwah New York City
Volatility Stocks are highly volatile Stocks are less volatile
Traffic Control NASDAQ is a market maker NYSE is a specialist
Listing Fee Entry fee is ~$50,000 to $75,000. The total yearly listing fee comes out to be at $27,500 The entry fee is ~$500,000. The total yearly listing fee is based on the total number of shares and the cap is at $50,000
Number of Listed Companies There are about 3800 companies listed on NASDAQ There are about 2400 companies listed on NYSE
Indices NASDAQ includes NASDAQ composite, NASDAQ 100, and NASDAQ biotechnology NYSE includes NYSE 100 and NYSE Composite
Leader NASDAQ is a leader in market share and volume of shares traded NYSE is a leader in accrued market cap of the listed companies
Trading Method Trading is done through telecommunication On NYSE, trading is done physically
Ticker NDAQ ICE
CEO Bob Greifeld Duncan L. Niederauer

Conclusion

As seen above, even though NASDAQ and NYSE are major indices and are in the same business of trading, there are many differences in the way they operate, and there are differences in the constituents. There are also listing requirements that the company has to follow or match for the companies to be listed on NYSE or NASDAQ.

Popular Course in this category
Investment Banking Course(117 Courses, 25+ Projects)117 Online Courses | 25 Hands-on Projects | 600+ Hours | Verifiable Certificate of Completion | Lifetime Access
4.9 (8,986 ratings)
Course Price

View Course

Related Courses
Mergers & Acquisition Course (with M&A Projects)Financial Modeling Course (3 Courses, 14 Projects)

Recommended Articles

This is a guide to NASDAQ vs NYSE. Here we discuss the NASDAQ vs NYSE key differences with infographics and comparison table. You can also go through our other suggested articles to learn more –

  1. NASDAQ vs Dow Jones
  2. Primary Market vs Secondary Market
  3. Finance vs Economics
  4. Insolvency vs Bankruptcy
  5. Key Differences of Mortgage Banker vs Broker

All in One Financial Analyst Bundle (250+ Courses, 40+ Projects)

250+ Online Courses

40+ Projects

1000+ Hours

Verifiable Certificates

Lifetime Access

Learn More

0 Shares
Share
Tweet
Share
Primary Sidebar
Finance Blog
  • Economics
    • What is Command Economy?
    • Tax Reform
    • Green Field Investment
    • Elastic Demand Formula
    • Tax Sale
    • Gross Income vs Net Income
    • NASDAQ vs NYSE
    • Trade Deficit
    • Tax Shelter
    • Form 10 K
    • International Investment
    • Leading vs Lagging Indicators
    • Nominal GDP vs Real GDP
    • Monetary Policy vs Fiscal Policy
    • Foreign Direct Investment
    • CRR vs SLR
    • Elasticity of Demand Example
    • Economics Example
    • Negative Correlation Example
    • Economies of Scale Example
    • Macroeconomics vs Microeconomics
    • Macroeconomics Problems
    • Perfect Competition vs Monopolistic Competition
    • CPI vs RPI
    • Elastic Demand vs Inelastic Demand
    • Primary Market vs Secondary Market
    • Monopoly vs Monopolistic Competition
    • Supply vs Demand
    • Duty vs Tariff
    • Deflation vs Disinflation
    • Inflation vs Interest Rates
    • Repo Rate vs Reverse Repo Rate
    • Price Elasticity of Demand Formula
    • Oligopoly vs Monopoly
    • Monopoly vs Perfect Competition
    • Cross Price Elasticity of Demand Formula
    • Demand Pull Inflation
    • Variance Analysis
    • Money vs Currency
    • Mean vs Median
    • Nominal vs Real Interest Rates
    • Tax Evasion vs Tax Avoidance
    • Career in Economics
    • Bank Rate vs Repo Rate
  • Accounting fundamentals (485+)
  • Asset Management Tutorial (140+)
  • Banking (43+)
  • Corporate Finance Basics (126+)
  • Credit Research Fundamentals (6+)
  • Finance Formula (372+)
  • Financial Modeling in Excel (13+)
  • Investment Banking Basics (60+)
  • Investment Banking Careers (26+)
  • Trading for dummies (66+)
  • valuation basics (25+)
Finance Blog Courses
  • Investment Banking Course
  • Mergers & Acquisition Course
  • Financial Modeling Course
Footer
About Us
  • Blog
  • Who is EDUCBA?
  • Sign Up
  • Corporate Training
  • Certificate from Top Institutions
  • Contact Us
  • Verifiable Certificate
  • Reviews
  • Terms and Conditions
  • Privacy Policy
  •  
Apps
  • iPhone & iPad
  • Android
Resources
  • Free Courses
  • Investment Banking Jobs Offer
  • Finance Formula
  • All Tutorials
Certification Courses
  • All Courses
  • Financial Analyst All in One Bundle
  • Investment Banking Training
  • Financial Modeling Course
  • Equity Research Course
  • Private Equity Training Course
  • Business Valuation Course
  • Mergers and Acquisitions Course

© 2020 - EDUCBA. ALL RIGHTS RESERVED. THE CERTIFICATION NAMES ARE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS.

EDUCBA Login

Forgot Password?

EDUCBA
Free Investment Banking Course

Corporate Valuation, Investment Banking, Accounting, CFA Calculator & others

*Please provide your correct email id. Login details for this Free course will be emailed to you
Book Your One Instructor : One Learner Free Class

Let’s Get Started

This website or its third-party tools use cookies, which are necessary to its functioning and required to achieve the purposes illustrated in the cookie policy. By closing this banner, scrolling this page, clicking a link or continuing to browse otherwise, you agree to our Privacy Policy

EDUCBA

*Please provide your correct email id. Login details for this Free course will be emailed to you
EDUCBA
Free Investment Banking Course

Corporate Valuation, Investment Banking, Accounting, CFA Calculator & others

*Please provide your correct email id. Login details for this Free course will be emailed to you

Special Offer - Investment Banking Course Learn More