NASDAQ vs. NYSE

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Difference between NASDAQ and NYSE

NASDAQ (formerly known as the ‘National Association of Securities Dealers Automated Quotations') is the biggest electronic screen based financial security trading center of United States. Enlisting more than 3,700 corporate houses and businesses, NASDAQ has the acclamation of highest trading volume stock market of the world.NYSE or New York Stock Exchange is another American stock market. It is located at 11 Wall Street, lower Manhattan. NYSE is the largest global stock exchange in terms of market capitalization. Its market capitalization was US $28.5 trillion during May 2008. It is a privately governed stock exchange.

NASDAQ
NYSE

History

NASDAQ was started in the year 1971. The credit of its formation goes to the National Association of Securities Dealers. This stock exchange is owned and administered by OMX Group of NASDAQ. It is the first electronic stock exchange of the world. It is the first US stock exchange to advertise directly to public. Till 1987, telephones were the most popular medium of business here. However, after stock market crash in 1987, Small Order Execution System was executed for trading. In 1992, NASDAQ started first intercontinental security linkage in the world with London stock exchange. In 1998, its merger with American Stock Exchange materialized. NASDAQ purchased Philadelphia Stock Exchange in 2007. NYSE was a product of Buttonwood Agreement. It started operation in the year 1792. Currently, Marsh Carter is the Chairman of NYSE.

Continued Listing Requirements

Both qualitative and quantitative continued listing criteria are prevalent in NYSE. The stock exchange has the sole authority to examine the criteria under which a company falls. If average closing price of the stock of a company is less than $1.00 for a time period of consecutive 30 trading days, price listing criteria comes into picture.For affiliated companies, numerical criteria are followed for continued listing.For funds and REITs, listing criteria are different. To approve continued listing, NASDAQ requires corporate governance standards. It notifies the corporate houses, when their companies fail to comply with continued listing requirements and standards.

Trading Schedule

Normal trading session of NASDAQ continues from 9:30am to 4:00pm on all trading days. Before the initiation of trading, there is a pre-trading session. It starts on 7:00am and continues till 9.30 am. After the closing of trading, there is a post-market session between 4:00pm and 8:00pm. Regular trading hours at NYSE is from 9:30 AM to 4:00 PM. It is open from Monday to Friday except holidays. Holidays, when both the stock exchanges remain closed are Good Friday, New Year's Day, Washington's Birthday, Memorial Day, Thanksgiving Day, Labor Day, Independence Day, and Christmas.

Summary

  • Online trading facility is available in both the stock exchanges. All policy changes and updates are notified in the websites of respective stock exchanges regularly. By keeping touch with the websites, you can collate all necessary and relevant information.
  • Both the NYSE and NASDAQ stock exchanges are showing the signs of improvement from the clutches of global recessionary wave.

Though indexes of NYSE and NASDAQ are not the sole indicators of the economy of America, they impact the functioning of US economy in a big way.

Which one has more companies included?
  • NASDAQ
  • NYSE
 
 

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