ROLE OF

NYSE AND
NASDAQ

HISTORY OF NYSE
It is worlds largest stock exchange.
It was created in 1792 by the Buttonwood
Agreement.
It is Headquartered in New York, United States.
NYSE has 3,000 companies shares listed.
In 2007, the NYSE merged with Euronext. It now
has the capacity to trade up to 10 billion shares
per day.
In 2008, the NYSE acquired the American Stock
Exchange (AMEX), focusing on small cap
companies.
The opening bell of the NYSE rings at 9:30 ET,
while the closing bell rings at 4 pm ET. This
tradition began in 1870 with a Chinese gong.

ABOUT NYSE
The New York Stock Exchange (NYSE) is
considered the largest equities-based exchange
in the world based on total market capitalization
of its listed securities.
Trading Floor
The NYSE is an auction market.
NYSE stocks typically have three-letter ticker
symbols (such as McDonalds's: MCD).
Some of the companies listed on NYSE are
General Electric, McDonald's, Coca-Cola, Gillette
and Walmart, etc.

WORKING OF NYSE

SPECIALIST
Helps bring buyers and sellers together to
complete transactions at a fair price
Once an order is received
Immediately match ask and bid
Conduct an auction with market makers

Responsible for maintaining an orderly market

May represent customer orders or orders from his
or her own account

 As of 2012, there were 169 stock brokers who are

present om the floor of the NYSE
KraneShares E Fund China Commercial Paper ETF
(NYSE:KCNY) listed its Commercial Paper ETF on
3rd December 2014 in New York.

ROLE OF NYSE

Individual Investors
Economic Benefits
Liquidity
Raising Capital

ABOUT NASDAQ
It is a global electronic marketplace for buying and
selling securities.
All trading on the Nasdaq exchange is done over a
network of computers and telephones and does not
have a physical trading floor that brings together
buyers and sellers as in case of NYSE.
Nasdaq stocks typically have four or five letter
ticker symbols (such as Microsoft: MSFT)
Some of the companies listed on NASDAQ are
Apple, Google, Microsoft, Oracle, Amazon, Intel, etc.

HISTORY OF NASDAQ

NASDAQ stands for National Association of Securities

Dealers Automated Quotations.
NASDAQ was founded in 1971 by the National Association
of Securities Dealers (NASD).
It is the second-largest exchange in the world behind only
the New York Stock Exchange.
In February 8, 1971 it was the world's first electronic stock
market.
It is Headquartered in New York, United States.
Nasdaq officially separated from the NASD and began to
operate as a national securities exchange in 2006.
In 2007, it combined with the Scandinavian exchange group
OMX to become the Nasdaq OMX group, which is one of the
largest exchange company globally.
More than 3000 companies are listed on NASDAQ.

NASDAQ Index
Nasdaq has more than 40000
indexes.
Ex: Nasdaq 100,Nasdaq Composite,
etc.

PROCESS OF TRADING
Customer
makes

order

Market Maker
makes bid
and ask
price
Trade Completed

Market Tiers
NASDAQ has three different market
tiers:
NASDAQ Capital Market (Small cap)
NASDAQ Global Market (Mid cap)
NASDAQ Global Select Market (NASDAQ-GS
large cap)

MARKET MAKER AND ITS

TYPES

Retail Market Makers

Wholesale Market Makers
Institutional Market Makers
Regional Market Makers

NASDAQ: THREE LEVELS

Level 1: is for the customers who do not
consistently trade which make them not a
market maker and who usually want the
current quotes on stocks.
Level 2: is for the customers who consistently
trade stocks which make the brokers to choose
the market maker with the best bid and/or ask
and make the deal.
Level 3: is for the market makers who wants
the level 2 but also needs the capability to
change their own quotations

NYSE VS NASDAQ
NYSE

NASDAQ

Physical Trading Floor Virtual Trading Floor

Specialist
Rely on market
makers
Offers Price
Price as it is
Improvement
1st Largest

2nd Largest

CONCLUSION
We believe that NYSE and NASDAQ
do not directly compete for they
have each developed their own
unique place in the financial market.
Both demonstrate sustainable growth
by maintaining their core principles
while adapting to advancements in
technology.

PREPARED BY:
SAGAR P. JAIN
RAJATH VADGAL
RAHUL KUMAR SINGH