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Stock Vs Nasdaq

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When someone receives money for the first time, one of the first things that may come to mind is, “How do I make more?” Whether it be out of greed or in pursuit of prosperity, planning ensues. Hard work is an option, but that takes a lifetime to reap. Perhaps one could win the lottery, or receive inheritance from a distant, elderly family member, but how practical is it to plan for that? Given that either choice has pros and cons, a decision, for some, would be hard to make. Rather than debating forever though, a good midpoint between the two (if one is willing to take a risk)would be stock investment. With some financial backing, stocks could be a low-effort, possibly high return alternative. Before investing in stock, one must know …show more content…

There are thousands of exchanges worldwide, but the two biggest are located in the states. The largest is the New York Stock Exchange (NYSE), with NASDAQ falling just behind it. NYSE is a much older exchange than NASDAQ, and has much stricter listing criteria for companies. NYSE trades stocks “physically” in a sense, with actual brokers buying and selling stock for their employers. NYSE also handles trader in an auction-style, with bids from buyers and asking prices from sellers. NASDAQ on the other hand, while still selective, is less strict than NYSE, and handles trades electronically with dealers who are a middleman between buyers and sellers. NASDAQ is used represent trends in technology, too–many tech companies are listed with NASDAQ. A few final things to understand about the stock trading is the separation of sectors and the Dow and S&P 500. Sectors are separated sections of the stock market devoted to particular industries. This separation allows potential buyers to see how specific industries are doing. The Dow Jones and S&P 500 are similar in purpose. These indexes are meant to be indicators of how certain markets are performing, and can indicate how an economy is doing as a

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