Financial Management Unit 1 Individual Project
October 7, 2012
The New York Stock Exchange also known as NYSE along with the National Association of Securities Dealers Automated Quotation System that also known as NASDAQ will be compared and contrasted. Due to the stock exchange’s sheer size, laws have been proposed and passed such as the Public Company Accounting and Investor Protection Act of 2002 and the Sarbanes-Oxley Act of 2002. Becoming knowledgeable within finance can help individuals who obtain a career within the studies of finance and business. Both the NYSE and the NASDAQ markets accommodate a major segment of all equities trading in North America, though, the two exchanges are not the same.
How are NYSE and NASDAQ similar, if at all?
When it comes to the world finance the stock market comes to mind. Stocks or common stock is a financial asset showing ownership in a company. The stock market is the place where stocks can be sold. The stock market is divided up into two parts; the primary and the secondary market. The primary is the market for the sale of stocks by companies for the first time. The secondary market is more familiar to the public, at least by the two common secondary stock markets; the New York Stock Exchange (NYSE) and National Association of Securities Dealers Automated Quotation System (NASDAQ) (Brooks, 2013). The secondary market, which NYSE and NASDAQ deals in, is the sale of stock that has already been sold at least once where for the first time new stockholders can buy stock including current stockholders can sell or buy more stock. The similarities in NYSE and NASDAQ are that they stock markets that sell stock known as a stock exchange. The stock exchanges facilitate the selling and buying of stock or stock exchange by matching buyers with sellers. This includes matching the supply with the demand for that supply. Most of the stock exchanges in North America or mainly the United States occur in both of these stock exchanges markets (Brooks, 2013).
How are the two exchanges different from one another, if at all?
NYSE and NASDAQ have many similarities, but operate differently and trade with different types of equities. Again, NYSE is a acronym for New York Stock Exchange, and NASDAQ is the acronym for National Association of Securities Dealers Automated Quotation. The two organizations are similar due to the fact that they are both well known within the trading sector, and offer high-end services. Both are well known for their exchange of equities between buyers and sellers, they are both publicly traded organizations, and both are highly in demand on the stock exchange market. Although, the key differences between NASDAQ and NYSE, are contained by their individual occupation principles. NASDAQ’s components are basically electronics, technology and Internet-based companies, and this is the reason why NASDAQ is often determined as a high-tech market. On the other hand, the NYSE comprises of older and more established companies, which are mostly vast industries, and blue chip organizations. The NYSE is said to be a typical market where people trade on behalf of their companies, while NASDAQ investors