Question
What is the difference between the nyse and nasdaq?
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6th Nov 2009 by Joseph Pousada
The basic feature of exchanges including the New York Stock Exchange is that there is a physical location in which buyers and sellers meet to create a market. Of course, you can not go into the NYSE with your certificates but instead your order would be represented indirectly through a broker at the exchange to buy or sell on your behalf. The NYSE has many listed stocks and will assign a physical location on the exchange where one can find brokers and a specialist to execute orders. The NYSE incorporates a specialist system in which it will designate a “specialist” to certain listed stocks. The specialist plays a special role in promoting order in the market for the stocks they are assigned to.
The Nasdaq is an “over the counter” market in which there is no one physical location for which trading takes place and is a negotiated market. Today it is one of the largest electronic securities market comprised of many market makers and physically located in many places but connected electronically. The name was derived as an acronym for the system used, “National Association of Securities Dealers Automated Quotation System”. There are three levels of service. The first is usually seen by most customers and shows the inside bid and ask prices. This is the best bid price which would be the highest price quoted for selling your stock and the best ask price which would be the lowest price quoted for buying your desired stock. The second level would list all the bid and ask prices from the different market makers. Some brokerage companies will provide this information to certain clients. The third is only available to the market makers as it will allow them to enter in bid and ask prices.
Reference:
http://www.nyse.com/
http://www.nasdaq.com/
The basic feature of exchanges including the New York Stock Exchange is that there is a physical location in which buyers and sellers meet to create a market. Of course, you can not go into the NYSE with your certificates but instead your order would be represented indirectly through a broker at the exchange to buy or sell on your behalf. The NYSE has many listed stocks and will assign a physical location on the exchange where one can find brokers and a specialist to execute orders. The NYSE incorporates a specialist system in which it will designate a “specialist” to certain listed stocks. The specialist plays a special role in promoting order in the market for the stocks they are assigned to.
The Nasdaq is an “over the counter” market in which there is no one physical location for which trading takes place and is a negotiated market. Today it is one of the largest electronic securities market comprised of many market makers and physically located in many places but connected electronically. The name was derived as an acronym for the system used, “National Association of Securities Dealers Automated Quotation System”. There are three levels of service. The first is usually seen by most customers and shows the inside bid and ask prices. This is the best bid price which would be the highest price quoted for selling your stock and the best ask price which would be the lowest price quoted for buying your desired stock. The second level would list all the bid and ask prices from the different market makers. Some brokerage companies will provide this information to certain clients. The third is only available to the market makers as it will allow them to enter in bid and ask prices.
Reference:
http://www.nyse.com/
http://www.nasdaq.com/
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4th Nov 2009 In Investing
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