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NYSE vs. NASDAQ? 

Decipher This Alphabet Soup, Please!

By Carolyn Curci

Q. What is the difference between the NYSE and the NASDAQ? 

A.  The New York Stock Exchange (NYSE) provides the facilities for stock trading and rules under which trading takes place. Stock trading on the NYSE occurs auction-style: In each transaction, stock is sold to the highest bidder and bought for the lowest offer. The types of companies traded on the NYSE are the oldest, largest, and best-known companies

     Thousands of stocks are traded electronically—using computers and telephones—on the NASDAQ (National Association of Securities Dealers Automated Quotations). A sophisticated electronic network run by the National Association of Securities Dealers lets brokers trade from their offices all over the country. Continuously updated prices are carried on their computer screens, while they buy and sell over the telephone. NASDAQ lists 5,500 companies—from small, emerging firms to corporate giants like Microsoft, Apple Computer and Intel. Many of the NASDAQ listings in every size category are in technology, telecommunications, banking, retail and other growth sectors.

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Carolyn Curci is a Vice President and Financial Adviser

with Janney Montgomery Scott.

You may contact her at ccurci@jmsnonline.com

E-mail this article.

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