New York Stock Exchange Essay Example

depends on a specialist handling it. This is also the reason, why the New-York stock market is considered to be unhurried and more stable. And this is where methods of technical analysis make the best use.

If a sufficient imbalance between supply and demand takes place, the NYSE specialist reserves the right to take part in bidding and use the reserve stock of shares he works with.

It should be mentioned, that in NYSE, all trades take a pace at a physical place on the trading floor of a company.

In the NASDAQ, the role of a specialist is held by a market maker, whose job is to form prices and provide liquidity. Among the market makers there are such famous financial institutions as Goldmaan Sachs, Solomon Brothers, Merrill Lynch etc.

The most fundamental difference between the NASDAQ and NYSE lays in the way security on exchanges is transacted between sellers and buyers. Rather than an auction market, NASDAQ is a dealer market and a platform for thousands of computers, communicating with each other within common network. The participants of the market don’t sell to or buy from one another directly, but operate through a dealer – a market maker.

NYSE, on the other hand, is an auction market. Within a process of concluding buying-selling deals the auction takes place.

That fact is worth mentioning, that prior to March 8, 2006 the NYSE exchange was listed as a private-traded corporation, when the NASDAQ remained public. Thus, before this date, one of the major differences between the two stocks was their type of ownership. In March 2006, after more than two hundred years of its foundation, the

NYSE finally went public and the difference between the two stock markets decreased.

Both NASDAQ and NYSE markets remain the most profitable and trusted platform for shareholders and traders in North America. And judging from its differences, one should decide which market to use as a ground for his business.