Comparison between NYSE and NASDAQ

Comparison between NYSE and NASDAQ

Q1) Similarity between NYSE and NASDAQ

New York stock exchange and NASDAQ are considered as major stock exchanges of American that are involved in the transaction of companies stock from North American and across the globe. NYSE and NASDAQ are by no means similar to each other and there way of performing transaction is different from one another. The only similarities between these two stocks exchange it that they are involved in the transaction of several equities.

Q2) Difference between NYSE and NASDAQ

Stock market is generally described as a place where individual are involved in the transaction of equities through either NYSE, or NASDAQ mainly because of their quality services to buyers and sellers. These two stock exchanges of the country are well known for providing trading services of equities to the people of American with the whole world. However, from operational point of view these two exchanges are entirely different from one another. Some of the major differences of these stock exchanges are described below (Kedia & Panchapagesan, 2004).

Location of Stock Exchange 

In stock exchange environment the term location does not mean the place where it is situated rather it describes the place where buyers and seller are involved in the transaction process of the equities (Welsh, 2002). For instance, on New York stock exchange (NYSE) the entire trade process occur on the floor, which means that all the buyers and sellers are physically present on the exchange and before any transaction; they either raise their hand or ring the bell. On the other hand, in NASDAQ there is no physical appearance of the individual, rather the entire transaction process in done through telecommunication network, with the help of particular investor that have the responsibility of several securities.

Dealer vs. Auction Market 

The transaction process between ...