NYSE vs NASDAQ

NASDAQ and the New York Stock Exchange (NYSE) are the two largest stock exchanges in the world.

Both the stock exchanges are great platforms for participating in securities trading.

Although both stock exchanges share a lot of similarities in their considerable size and purpose, there are quite a few differences.

The difference between NASDAQ and the NYSE can be spotted on various levels:

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1- Type of market:

• Nasdaq is a dealer’s market. What that means is that all participants trade through a dealer rather than directly with each other.
• The NYSE on the other hand is an auction market. It allows individuals to transact with each other on an auction basis.

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2- Location of Transactions

Both of the two largest stock exchanges in the US are located in New York City but the locations of transactions for trading on NASDAQ and on the NYSE are very different.

• While NYSE still has a physical trading floor, many of the transactions occur at its data center situated in Mawah, New Jersey.
• NASDAQ, on the other hand, is an entirely electronic exchange. It does not have a physical trading floor and operates through direct trading between investors and market makers.

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3- Traffic Control

Both exchanges have different traffic controllers who execute their functions in a slightly different ways.

• NASDAQ’s traffic controller, known as the ‘market maker’, actively buys and sells stocks on behalf of traders.
• The NYSE’s traffic controller, known as the ‘specialist’, facilitates the market for buyers and sellers through setting opening prices for stocks, accepting limit orders, and moderating interest for particular stocks.

4- Types of Companies Listed

• NYSE trades stocks for around 2,800 companies, while Nasdaq has more than 3,300 listings.
• The NASDAQ-100 has 100 of the largest publicly-traded businesses, based on market capitalization. NASDAQ’s wider exchange has quite a few small and micro-capitalization stocks as well.

5- Listing Requirements & their fees

• To be listed on NASDAQ, a company must have at least 1,250,000 shares available for the public to trade. For Nasdaq, the entry fee ranges from $50,000 to $75,000, with a yearly fee of around $27,000.
• For a company to be listed on the NYSE, companies should issue a minimum of 1,100,000 to at least 400 shareholders. As per the NYSE, the entry fee goes up to $500,000.

6- Perception of Stocks

Volatility: In case you want to trade stocks that have a potential for rapid price movements, the stocks listed in the NASDAQ will be better for you.

In case you want to trade with stocks that are more stable, you are better off with the stocks listed in the NYSE.

Nature of trading: NASDAQ doesn’t offer the option of floor brokers as the NYSE does. It exclusively trades electronically.

7- Private vs Public

Some time ago, NASDAQ was a publicly-traded corporation, while the NYSE operated privately.

However, all that changed in March 2006! The NYSE also went public and traders were able to trade its shares on an exchange.

Traders can place their money on Nasdaq and NYSE through the Nasdaq and NYSE platforms.

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How to buy NYSE stocks and NASDAQ stocks?

NYSE and NASDAQ stocks can be bought online through the medium of an online broker. Wealthface is one of the leading online investment firms that can help you to start trading stocks in these well-known exchanges.

Read this for more: NYSE vs NASDAQ: What are the Differences?

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Wealthface offers stocks from both Exchanges. If you are willing to invest, then you are at the right place.

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