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

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, 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

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.

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