New York Stock Exchange And NASDAQ Explained
New York Stock Exchange & NASDAQ continue to be the world’s biggest exchanges for now.
Mainly the world’s blue chip companies trade shares worth millions of dollars in the two exchanges daily.
Featuring rich histories, New York Stock Exchange & NASDAQ continue to undergo transformation with the aim of positioning itself to serve the companies that use it to raise capital.
Continue reading and learn the history and the current situations of these two exchanges.
A). New York Stock Exchange
New York Stock Exchange is the world’s largest stock exchange, with its location in New York.
NYSE has a market capitalizationof more than 17 trillion dollars and daily transactions of about 200 billion dollars are completed daily. It has a listing of about 2000 companies, majority of them being companies in the United States.
The US Securities & Exchange Commission regulates NYSE.
History of New York Stock Exchange
The New York Stock Exchange was founded in May 1792 by a group of stock brokers who came together and signed the Buttonwood agreement. This was necessitated by fast growing securities market during those days. With so many companys listed at the New York Stock exchange a professtional stock screener like Trade Ideas Pro is a big help. In case you are interested in an active Trade Ideas Subscription you can save between 15% and 25% on your first signup. Check out the current discount rates, coupons and the working Trade Ideas Promo Code.
The founding stockbrokers set a rate of commission and started trading on government bonds. Later, telegraphic communications became advanced and this helped stockbrokers trade with ease.
With time, membership to the exchange increased as more opportunities became apparent. Now high sped transactions are completed in real time, thanks to technological advancements.
Current Situation at New York Stock Exchange
Now, both large and medium companies are listed at the New York Stock Exchange. Investors have an opportunity to trade on a wide range of classes that include options, equities, exchange traded funds and bonds.
Moreover, the stock exchange houses a number of stock market indices: the NASDAQ composite, NYSE US 100 Index, the NYSE composite, Dow Jones and others.
Nonetheless, New York Stock Exchange is the largest IPO provider in the world.
The companies that list on it to raise capitalmainly use ticker symbol.
About a third of the companies listed are from the financial sector, while the rest are from oil and gas, healthcare, technology, communications and many more.
Among the major firms that list on New York Stock Exchange, include Sprint Corp, Ford Motor Company, Bank of America, Twitter Inc. and Pfizer Inc.
History of NASDAQ
NASDAQ was formed in 1971 by the National Association of Security Dealers and sells stocks of companies that are listed on its stock exchange with the ticker symbol NDAQ.
It started trading in February 1971 and was by then the world’s first stock market that trades electronically. However, the electronic system was just a quotation system and did not have a way of handling electronic stock trades.
NASDAQ went through many transformations over the years and several years later, it became the first stock trading company to trade online. This helped attract fast growing blue chip companies such as Dell, Oracle, Cisco, Apple and Microsoft among others.
It also matched with the London Stock exchange on 1992 to offer intercontinental linkage in the trading of securities. In the year 2006, NASDAQ changed its status to a Licensed Securities Exchange.
It later merged with OMX group in 2007 to expand its presence in Nordic countries and changed its name to NASDAQ OMX Group.
Current Situation at NASDAQ
Now, NASDAQ is known to the stock exchange for industry-leaders and us one of the largest United States based stocks market.
It has more listed companies than the New York Stock Exchange (About 3,100) and trades about 2 billion shares daily. This is the biggest amount that has been recorded by any stock exchange anywhere in the world.
Moreover, NASDAQ has handled the highest number of Initial Public Offers in history-more than a thousand since year 2000. Also Nasdaq is ferociously defending its territory.
To be listed on NASDAQ, it’s a must that a company be registered with the Securities and Exchange Commission of the United States and have at least three companies acting as dealers or brokers of specific securities.
They should also meet the minimum stipulated requirements with regard to shareholders, capital, public shares and assets.
New York Stock Exchange and NASDAQ remain the biggest exchanges not only in the United States, but also all over the world.
There is billions of dollars worth of shares that are traded daily as the world’s biggest companies in various sectors of the economy seek to raise capital.