what is the difference between the NYSE and NASDAQ?

fffreak44: what is the difference between the NYSE and NASDAQ?
I am familiar with the NYSE but do not know much about NASDAQ. What are some pros and cons to each site?

Answers and Views:

Answer by jeff410
The NYSE is a physical place where traders trade stocks. The NYSE uses Specialists to to maintain orderly trading in each stock. The NASDAQ is not a physical place, but an electronic system for trading stocks listed on that system. The NASDAQ uses market makers to make a market in NASDAQ stocks. Market makers trade for their own accounts.

Answer by ramni222
nasdaq means national association of securities dealers automated quoting system

nasdaq is an automated system of reporting trades in over the counter stocks on this system. its a computerized stock quote and trading system. in other words, the trades are largely handled by computer as opposed to the nyse that was, until recently, a manually traded system.

the nyse, or big board, is the same, except their system actually had traders who actually bought and sold stocks on behalf of the nyse owners. the owners had seats on the stock trading floor. nyse recently bought a company, archipelago exchange,this purchase enabled the nyse to become an automated stock trading system.

the difference between the nasdaq and the nyse is largely

1) expense to be listed on the nyse

and

2) because of the expense of the nyse, companies are able to raise lots more capital on stock sales.

on the nyse, their standards for being listed are more stringent.

however, with so many people having billions of dollars, this distinction is becoming less important.

there are other very strong stock exchanges with substantial amounts of cash available, like the singapore, dubai, bombay,hong kong, shanghai, tokyo.

in the future, the nyse and nasdaq, will find significant competition from the newer exchanges as the wealth of the world moves to other financial centers. this means that in the future, companies that need to raise capital can go to dubai instead of the nasdaq or nyse.

Answer by Sunnybear
The NYSE lists the big companies, the blue chips. “A corporation, operated by a board of directors, responsible for listing securities, setting policies and supervising the stock exchange and its member activities. The NYSE also oversees the transfer of members’ seats on the Exchange, judging whether a potential applicant is qualified to be a specialist. The NYSE uses floor traders (people) to make trades, whereas the Nasdaq and many other exchanges are computer driven.” The NYSE is “organized chaos” with people placing buy and sell stock orders. The Nasdaq has mostly the micro and small market capitalization stocks and a handful of bigger-capitalization companies. “The NASDAQ is an electronic exchange where stocks are traded through an automated network. It stands for National Association of Securities Dealers Automated Quotations System. As a general rule of thumb, it is where most technology stocks are traded.” “The NASDAQ lists over 3,200 companies that are leaders of technology, retail, communications, financial services, transportation, media and biotechnology. Unlike the New York Stock Exchange, it is totally electronic.”