NASDAQ vs. NYSE

NASDAQ
NYSE

The NASDAQ and NYSE, both located in New York City, are the two largest stock exchanges in the world. The New York Stock Exchange (NYSE) has a larger market cap than the NASDAQ, which is known for its large selection of technology stocks (e.g., Google and Facebook). While trading on the NASDAQ is fully automated, the NYSE still uses human specialists to monitor and occasionally carry out its electronic trading. It is cheaper for companies to enter and stay listed on the NASDAQ exchange.

Comparison chart

Edit this comparison chart

NASDAQ

NYSE

Acronym for National Association of Securities Dealers Automated Quotations New York Stock Exchange
Year launched 1971 1792
Location Trading is electronic. Offices in a floor of the MarketSite tower in New York City's Times Square. New York Stock Exchange building on Wall Street in New York City
Market type Dealer’s market Auction market
Process of Trade Execution Broker contacts market maker or uses online form Broker contacts specialist floor trader or enters it into Universal Trading Platform (UTP)
Number of companies listed Around 2,900 Around 1,860
Total market cap of companies listed $8.5 trillion (2014) $16.6 trillion (2014)
Annual fee for listed companies Around $27,500 Based on the number of shares listed; capped at $500,000.
Listing fee $50,000 to $75,000 up to $250,000
Trading schedule Weekdays 9:30am to 4:00pm ET; a pre-market session 7:00am to 9:30am and post-market session from 4:00pm to 8:00pm Weekdays 9:30am to 4:00pm ET
Perception Exchange for high-tech stocks that are more growth oriented and potentially more volatile. Exchange for well-established companies, more stable stocks.
Public or private Public Held by publicly listed InterContinental Exchange (ICE), which also owns Euronext.
CEO Bob Greifeld Duncan L. Niederauer

Contents: NASDAQ vs NYSE

edit Location

While both the NASDAQ and NYSE are located in New York City, the NYSE's location on Wall Street is generally considered more iconic, perhaps due to the exchange's human element. Though trading on the NASDAQ is fully automated, the NASDAQ still has a physical presence in New York City, owning a floor in the MarketSite tower that is at the center of Times Square.

edit How Trades Work

The way trades are executed is the biggest difference between the NYSE and NASDAQ. The NYSE is an auction market, so trades occur between buyers and sellers by matching their bid and ask prices respectively. If an investor wishes to buy stock that trades on the NYSE, her broker must call an order to the floor broker or enter it into the Universal Trading Platform (UTP). Each company's stock on the NYSE has a specialist who oversees all its trades; this person is not an NYSE employee but someone hired by the listing company. The specialist acts as an auctioneer to match buyers and sellers, as an agent to accept limit orders, and as a human support when markets are frenzied.

The NASDAQ is a little different. Instead of being an auction market, it's a dealer's market. Buyers and sellers make transactions through a dealer, also called a market maker. Stock brokers must either call the market maker to make a trade or enter an order into the online execution system. In the same system, market makers are also required to enter their prices (for both buying and selling) that they will honor for each security. The electronic trading system then matches the buyers and sellers and executes the trade.

edit Listing Process

In order for a security to be listed on the NASDAQ, a company must submit an application and meet the following initial requirements:

To be listed on the NYSE, a company must submit a request along with the following: a list of corporate bylaws, five years of annual shareholder reports, copies of the company’s stock or bond certificates, the current year’s Form 10-K, a proposed schedule of expected stock distribution, and a proxy statement from the current year’s annual shareholder meeting.Moreover, the company is required to meet the following guidelines:

edit Listing Fee

The entry fee companies must pay to list stocks on the NASDAQ exchange is $50,000 to $75,000. Yearly fees are usually around $27,500.

The entry fee to list stocks on the NYSE is up to $250,000. Yearly fees are based on the number of shares listed and are capped at $500,000.

Listings fees are very profitable for the NASDAQ and NYSE. In 2011, the NASDAQ made $372 million, or roughly 22% of all its revenue, from listing fees and similar corporate services. For the NYSE, listing fees and similar corporate services accounted for 17% of its 2011 revenue, or $446 million.[1]

edit Companies Listed on Each Exchange

As of 2014, over 1,860 companies are listed on the NYSE with a market cap of $16.6trillion. The NASDAQ lists just over 2,900 companies with a market cap of over $ 8.5 trillion.

Examples of companies that trade on the NASDAQ include Apple, Facebook, Google, Microsoft, Intel, Kraft Foods, and Sun Microsystems. Examples of companies that trade on the NYSE are Bank of America, Coca-Cola, Wal-Mart, Citigroup, and General Electric.

edit Perceptions

The NASDAQ is perceived as a high-tech exchange and includes many firms that deal with the Internet or electronics. Its stocks are considered more volatile and growth oriented. Meanwhile, the NYSE is considered to be the exchange for well-established companies that have stable and established stocks.

edit Indices

NASDAQ indices include the NASDAQ Composite, NASDAQ-100, and NASDAQ Biotechnology.

Indices on the NYSE include the Dow Jones Industrial Average and NYSE Composite.

Other indices, like the S&P 500 and Russell 1000, include stocks listed on both exchanges.

edit References

Share this comparison:

If you read this far, you should follow us:

"NASDAQ vs NYSE." Diffen.com. Diffen LLC, n.d. Web. 21 Nov 2014. < http://www.diffen.com/difference/NASDAQ_vs_NYSE >

Comments: NASDAQ vs NYSE

Related Comparisons Follow Diffen
Make Diffen Smarter.

Log in to edit comparisons or create new comparisons in your area of expertise!

Sign up »
Top 5 Comparisons

share

Up next

Stocks vs. Bonds