In which of the following ways do the NYSE and NASDAQ differ?

~*Baby Gurl*~: In which of the following ways do the NYSE and NASDAQ differ?
A. Only the NYSE has a physical location.
B. As of the year 2000, NASDAQ traded more shares than NYSE.
C. Investment firms purchase their membership in NASDAQ.
D. NASDAQ is more appealing to major corporations than NYSE.

Answers and Views:

Answer by Wei Yi_FINA4242
I think A is the answer.

NYSE is a stock exchange with a physical location based in New York City, where stocks are traded in a centralized exchange.

What this means is that while you may be buying for example 100 shares of stock at the same time someone else is selling those shares, you do not buy those shares directly from the seller but instead from the exchange.

While NASDAQ which stands for National Association of Securities Dealers Automated Quotations. It is an over the counter market trading platform where the instruments are traded directly between 2 parties. Without an intermediary to eliminate counterparty risk

Because of the nature of over the counter trading, a physical location is not required.