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Assignment 1: Homework Set #1: Chapters 1, 2, & 3 0
Homework Set #1: Chapters 1, 2, & 3
Marquise Daniels
Dr. Ingrid P. Nelson – Ph.D
Fin 534 Financial Management
April 17th, 2017
Comparison of two main stock exchange in the US and their
The national association of security dealers and automated quotations abbreviated as NASDAQ and the New York stock exchange abbreviated as NYSE are two main stock exchanges in America. These two account for the highest amount of trading in relation to equities in America and globally. They operate in the same level as far as stock market is concerned but differ in terms how they conduct their stock market operations during selling and buying and also in the type of equity they deal with. The following table shows a comparison between the two (Ehrhardt & Brigham 2016).
| Activities | NASQAD | NYSE |
| When it was launched | 1971 | 1792 |
| Type of market | Dealer based type of securities market. Dealers sell their stock directly to the firms or any other investor through the internet of telephone. | Uses auction style in the security market where stocks are purchased by brokers. |
| Trading area | Conducted electronically through the internet. | Selling and purchasing in the NYSE is conducted in person at the floor of the exchange place. |
| Restrictions | This market acts as an alternative of the NYSE since because small companies which are unable to meet stock exchange requirements trade here. | NYSE traded corporations must possess a minimum of 2200 shareholders, trade more than 100000 shares monthly and has a revenue of 75 million dollars annually. |
| Stock traded | Volatile and high growth stock such as those of technological companies. | Traded here are Stocks of Companies with high turnover and which are well established. |
| Stock listing entry charges | Between 50,000 and 75,000 US dollars. | A maximum of 250,000 |
| Listing fee per annum | 27,500 US dollars | 500,000 US dollars which is capped. |
| Stock traded | Apple (NASDAQ:AAPL) | IBM (NYSE:IBM) |
A major similarity between the two stocks exchange is that they are both involved in the equity exchange and they attempt to match sellers with buyers or demand with supply. They are both major stock exchange in America and Europe. Companies trading in NASDAQ are less stable as compared with those in NYSE.
Reference
Ehrhardt, M. C., & Brigham, E. F. (2016). Corporate finance: A focused approach. Cengage learning.
