Difference Between NASDAQ vs NYSE
NASDAQ 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
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
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, dealers market is where multiple dealers punch in their prices at the same time at which 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 the transactions take place in Mawah based in New Jersey. NASDAQ, on the other hand, 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. It was founded by the NASDAQ CMX group. 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, that even though NASDAQ and NYSE are major indices and are in the same business of trading there is a large number of differences in the way they operate and also 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.
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