NYCE & NASDAQ

NASDAQ:
NASDAQ is short for "National Association of Securities Dealers Automated Quotations." It is an American stock exchange. NASDAQ is the biggest electronic computer screen based equity securities buying and selling market in the United States and the second largest after market capitalization in the world. Any person involved in dealing with stocks and trading will want to learn about NASDAQ. Through this organization, the stocks being purchased and sold in the stock market are sent to the traders in the form of a computer program. This helps the dealers to make use of real-time quotes for improved buying and or selling assessments. NASDAQ trading is done online, which means there is no physical trading done. NASDAQ lists more than 3,000 securities for business organizations. There are about three dozen nations incorporated with NASDAQ on behalf of just about every business worldwide. It is interesting to note that more than 300 groups of business organizations listed with NASDAQ are non U.S. companies. In order to meet the requirements and become certified to be listed with the NASDAQ, a business organization is required to be registered with the Securities and Exchange Commission and should include at least three economic firms that operate as stockbrokers and meet the requirements with regards to assets, shareholders and shares. NASDAQ enhances the contest by permitting numerous market contributors as well as traders, brokers and others to trade. At present, most of the new stocks are being traded on NASDAQ and this also involves retail, infrastructure, economic areas, media, technology and more.

NASDAQ Functions:
NASDAQ facilitates trading in stocks, derivatives, debt, commodities, structured products and exchange-traded funds, provides free stock quotes and facilitates access to capital by listing company securities. NASDAQ is a programmed coordination that deals in stocks. On the spot quotes are made available for securities because NASDAQ does not need to rely on a trading floor, which is the traditional way of dealing with stock exchange pricing. NASDAQ is also integrated into the over-the-counter stock market. As a result of this, when trading and selling stocks a client's stockbroker can go through the quotes and feed stock quote information for the selected stock into the computer. The computer finds the best price on the stock and the business transaction is completed. NASDAQ stock pricing and exchange can also be carried out by using the telephone or through the company's stock account.

NYSE:
The oldest and largest stock exchange in the U.S., located on Wall Street in New York City. The NYSE is responsible for setting policy, supervising member activities, listing securities, overseeing the transfer of member seats, and evaluating applicants. It traces its origins back to 1792, when a group of brokers met under a tree at the tip of Manhattan and signed an agreement to trade securities. Unlike some of the newer exchanges, the NYSE still uses a large trading floor in order to conduct its transactions. It is here that the representatives of buyers and sellers, professionals known as brokers, meet and shout out prices at one another in order to strike a deal. This is called the open outcry system and it usually produces fair market pricing. In order to facilitate the exchange of stocks, the NYSE employs individuals called specialists who are assigned to manage the buying and selling of specific stocks and to buy those stocks when no one else will. Of the exchanges, the NYSE has the most stringent set of requirements in place for the companies whose stocks it lists, and even meeting these requirements is not a guarantee that the NYSE will list the company. Also called Big Board.

NYSE Function
The New York Stock Exchange provides for the buying and selling of publicly traded shares of companies. It offers an auction style atmosphere designed to give both parties of a trade the fairest price. The exchange is open from 9:30 a.m. to 4:00 p.m. EST, Monday through Friday except on approved holidays. The trading floor is organized so that each listing has its own post where members interested in purchasing or selling stock on behalf of investors interact with a specialist broker

employed by an NYSE member firm. The broker acts as an auctioneer, creating the familiar frenzied appearance of the trading floor.

DIFFERENCE: Subject matter/Differences:

1) Director independence: The NYSE rules provide for the same general three-year "look-back" period as the NASDAQ rules, but until November 4, 2004, the look-back period for NYSE listed companies is only one year. Under the NYSE rules, if one director is chosen to preside at meetings of non-management directors, his name must be disclosed in the annual proxy statement (or, if none, in the company's Form 10-K); alternatively, the company may disclose the procedure by which presiding director is selected. The NASDAQ rules do not address the subject of presiding directors. 2) Meetings of non-management directors: The NYSE rules require the company to disclose a method by which interested persons may communicate with the presiding non-management director or the non-management directors as a group. The NASDAQ rules do not provide for communications with non-management directors. However, new SEC rules require the proxy statement to disclose whether the company has a procedure for shareholders to communicate with the board and, if not, why not. 3) Director nominations; compensation of officers: The NYSE requires each listed company to have nominating/corporate governance and compensation committees comprised entirely of independent directors. NASDAQ does not mandate the creation of separate committees, but director nominees and executive officer compensation must be determined (or recommended to the entire board) by a majority of independent directors or a committee of independent directors. 4) Audit committee composition: Under the NASDAQ rules, a member of the audit committee who ceases to be independent for reasons outside his reasonable control may remain on the committee until the earliest of the next annual meeting of shareholders or one year from the event causing noncompliance with the independence requirements. The NYSE rules do not provide for a transition period to regain compliance. 5) Internal audit function: Each NYSE listed company must have an internal audit function to provide management and the audit committee with continuous assessments of the company's system of internal controls and risk management processes. The NASDAQ rules do not impose an internal audit requirement. 6) Corporate governance guidelines: The NYSE rules mandate the adoption of corporate governance guidelines and publication of the same on the company's website. The company's annual report on Form 10-K must state that the corporate governance guidelines are on the company's website and available in print to any shareholder who requests it. The NASDAQ rules do not contain similar provisions.

7) Going concern qualifications: NASDAQ requires listed companies to publicly announce receipt of an audit report containing a going concern paragraph; the NYSE rules have no such requirement. 8) Related party transactions: Under the NASDAQ rules, related party transactions must be reviewed for potential conflicts of interest and approved by the company's audit committee or another group of independent directors. The NYSE rules do not address related party

As compared to NASDAQ, the NYSE is considered to be better established. This is mainly due to the fact that NYSE lists many blue chip firms and industrials that have been in existence for a long period of time.