Difference Between Nyse and Nasdaq - Nyse vs Nasdaq - Nasdaq vs Nyse скачать в хорошем качестве

Difference Between Nyse and Nasdaq - Nyse vs Nasdaq - Nasdaq vs Nyse

Difference Between Nyse and Nasdaq - Nyse vs Nasdaq - Nasdaq vs Nyse 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. From a distance, they appear to share a lot of similarities in their considerable size and purpose. But if you look closely, you will find that there are quite a few differences between these two mega stock exchanges. If you can get an understanding of the differences between NASDAQ and NYSE, you will have a clearer idea of the workings of a stock market. In this video, we will help you understand just that. Let’s get started. What are the differences between the NYSE and NASDAQ? The biggest difference between NASDAQ and NYSE is the type of market they are. 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. While this was the basic and most obvious difference, there are a few other differences as well and we will discuss them now. Auction Market vs Dealer’s Market The formats of NASDAQ and NYSE are representative of the difference in the way that they operate. An auction market, as run by NYSE, runs on the basis of buyers and sellers entering competitive bids at the same time. The price at which the stock gets traded is representative of the highest price that a buyer is willing to pay, and the lowest price a seller is willing to accept. Orders are then executed by a specialist after the matching bids and offers are paired together. A dealer’s market, such as NASDAQ features many dealers posting prices at which they buy or sell a specific stock. In a dealer’s market, a dealer serves the purpose of a market maker. That term stands for a member firm or market participant such as a brokerage company or bank that actively buys and sells stocks on behalf of traders. Market makers have the power of enabling the process of matching up buyers and sellers to be a lot quicker. They also perform the task of maintaining liquidity and trading efficiently. Location of Transactions Both of the stock exchanges are located in New York City but the location 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 the market makers. Originally, all of the trading on the NASDAQ took place over a computer bulletin board system, new automated trading systems have been introduced that offer the benefit of daily trading volumes and full reports on trades. Traffic Control Traffic controllers do the crucial job of connecting buyers and sellers. However, their roles are slightly different between NASDAQ and NYSE. Traffic Controllers are generally responsible for dealing with traffic problems and ensuring their markets run effectively. Both the exchanges have different traffic controllers who execute their functions in a slightly different way. NASDAQ’s traffic controller, known as the ‘market maker’, actively buys and sells stocks on behalf of traders, while 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. While both roles have the same end goal of enabling a smooth and orderly market for clients, they are different in the way they go about it. NASDAQ’s market maker effectively creates a market, while NYSE’s specialist simply facilitates it. Almost 40% of the NASDAQ’s trade volume is carried out via an electronic communications network (ECN), which is an automatic system for directly matching buyers and sellers. By way of comparison, on the NYSE, only 7% of the volume is done via an ECN. Though that is bound to change with evolution towards a hybrid system of humans and machines. Types of Companies Listed When it comes to the listings on NASDAQ and NYSE, the 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. #Difference_Between_Nyse_and_Nasdaq #Nyse_vs_Nasdaq #Nasdaq_vs_Nyse