Nyse Vs Nasdaq Essay

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The NASDAQ and the NYSE are both headquartered in New York. They are the both among the largest stock exchanges worldwide. The NASDAQ uses “automated” trading, whereas the NYSE has experts continually keeping track of everyday trading. The NYSE began long before the NASDAQ, however, the NASDAQ was the first U.S stock market to begin trading electronically. The NYSE has almost 2,000 companies listed, and the NASDAQ has almost 3,000 companies listed. The companies on the NASDAQ are usually technology related stocks that tend to be more volatile. The NYSE has more blue chip companies. Lastly, the NASDAQ has a significantly lower listing fee for stocks than does the NYSE

A company may choose the NASDAQ over the NYSE if they are technology based because the NASDAQ tends to accept technology companies more often than the NYSE. Tech companies may be fond of the NASDAQ due to the fact that it is all automated. The NASDAQ is also a good market for companies who do not have the money to pay for a listing on the NYSE because it is less expensive. Companies that choose to list their stocks on the NYSE may be perceived by the public as being associated with stable, enduring, blue chip companies.

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Their stock prices have a high volatility which may be due in part to the fact that the company is still in preclinical trials with their work and may not pass them, making them a risky company to invest in. Until their product is approved and out on the market, they may continue to have a highly volatile stock because of the high risk factor. Spikes in their stock prices may be a result of the hiring of their new Vice President of Chemistry, as well as their collaborations on work with the U.S Army and Intrexon Corporation. Drops in their stock prices may be a result of that very risk factor which causes investors to be fearful and or