{"id":12399,"title":"What is the Difference Between the NYSE and Nasdaq?","publisher":"Share Talk","author":"sharetalk","published":"2017-07-19T00:01:53+00:00","modified":"2017-11-04T10:08:16+00:00","canonical_url":"https://www.share-talk.com/what-is-the-difference-between-the-nyse-and-nasdaq/","markdown_url":"https://www.share-talk.com/what-is-the-difference-between-the-nyse-and-nasdaq.md","json_url":"https://www.share-talk.com/what-is-the-difference-between-the-nyse-and-nasdaq.json","category":"Learning and Investing","categories":["Learning and Investing"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2022/03/st-holder.jpg?fit=1536%2C1024&quality=89&ssl=1","format":"news","language":"en-GB","content":" \n\nThe NYSE and Nasdaq exchanges are worth more than $35 trillion in market capitalization, making up a sizable portion of the global equities market.\n\nHowever, while they are both large American stock exchanges containing listings that are household names, they are also very different in how they work.\n\nThe NYSE and Nasdaq have significant differences, including the size and number of listings, how trades are made, and also how they are perceived by investors.\n\n## COMPARING THE NYSE AND NASDAQ EXCHANGES\n\nToday’s infographic from [StocksToTrade.com](http://stockstotrade.com/nyse-nasdaq-infographic/) explains the major differences between these two exchanges.\n\n[!\\[\\](http://2oqz471sa19h3vbwa53m33yj.wpengine.netdna-cdn.com/wp-content/uploads/2017/07/nyse-vs-nasdaq.jpg)](http://www.visualcapitalist.com/difference-nyse-nasdaq/)\n\nCourtesy of: [Visual Capitalist](http://www.visualcapitalist.com)\n\n## SIZE AND NUMBER OF LISTINGS\n\nBy the value of listed companies, the NYSE and Nasdaq are the two largest exchanges in the world.\n\nThe NYSE has over 2,400 companies that combine for $26 trillion in market capitalization. It’s also home to many of the big “blue chip” companies that have existed for decades, like Walmart, Exxon Mobil, or General Electric. This is partly because the exchange has existed since 1792.\n\nMeanwhile, the Nasdaq has more companies than the NYSE, but has a wider spectrum in terms of the size of companies. Of course, the exchange is known for having the large tech-focused companies like Facebook, Google, and Amazon, but there are many smaller listings on the Nasdaq as well. In fact, there are around 1,200 smaller securities listed on the 46-year-old exchange with market caps of $200 million or less.\n\nIn total, there are over 3,800 companies listed on the Nasdaq, worth a total of $11 trillion in market capitalization.\n\n## OPERATIONAL DIFFERENCES\n\nAside from the obvious differences in the size and types of listings, the NYSE and Nasdaq also have significant operational differences.\n\nThe largest difference in the past was that the NYSE market was an auction market, while the Nasdaq was considered a dealer market. In the former, the highest bid for a stock is matched with the lowest asking price. In the latter, buying and selling happens in split seconds electronically through dealers. This difference has since changed as a result of trading technology, and both markets effectively connect buyers and sellers instantaneously in similar ways at the best price.\n\nThe Nasdaq has multiple market makers per stock – and some, like Apple even have 54 such registered makers. Meanwhile, the NYSE usually has one Designated Market Maker (DMM) per stock that ensures a fair and orderly market in that security. The NYSE also uses Supplementary Liquidity Providers (SLPs) as well.\n\n## DIFFERENT PERSPECTIVES\n\nFor various reasons, both stocks are seen a little differently by investors, as well.\n\nThe NYSE is seen as the stock market for “tried and true” securities that have been, and will continue to be, the mainstays of the financial world for decades.\n\nThe Nasdaq, on the other hand, is seen as a place for growth-oriented tech stocks. It was where the action was in the Dotcom boom and bust, and it’s the place where the world’s largest tech stocks are listed today.\n\n![](http://2.gravatar.com/avatar/bb18798e371a5d8fd8e52038cd5d1008?s=100&r=pg&d=mm)\n\nJeff Desjardins is a founder and editor of Visual Capitalist, a media website that creates and curates visual content on investing and business. [WEBSITE](http://visualcapitali.wpengine.com/)"}