What is the difference between US stock exchanges?

For example, between the NASDAQ and Dow Jones. Are they respectively associated beside exceptional industries? If they are not associated near unusual industries, I don't become conscious the plea they do not other move surrounded by alike direction.

Also, how do corporations agree on which stock exchange to initiate their IPO through?

Answers:
The two leading exchanges contained by the US are the New York Stock Exchange (NYSE), and Nasdaq.
Nasdaq is completely an electronic exchange. All transactions are made by computer.
The NYSE up till lately have be conducted on a trading floor, but it too is starting to trade electronically.

There are different requirements for almanac on respectively exchange. Generally the requirements are tougher on the NYSE. Smaller start-up companies–the sort that Silicon Valley is foremost for–have an easier time tryst the requirements of Nasdaq.

Generally the NYSE will own larger companies, whereas Nasdaq is unanimously perched towards smaller companies. I articulate “generally.” Note that Microsoft is traded on Nasdaq.

On any given time, one gauge of the market–such as the Dow Jones–may be up while another may be down. Before the recent stock market slide, the Dow be soaring while the Nasdaq be wadding. This simply mode that investors and traders happen to be favoring giant companies over smaller ones.

Trends progress. Back surrounded by the year 1999, Nasdaq rose something more than 80% that year, resourcefully ahead of other averages. Investors hindmost later be simply favoring small, entrepreneurial companies. Then come the year 2000--a top formerly a huge fall down.
The NASDAQ is a totally negotiate bazaar, where on earth flea market maker dictate prices on the NASDAQ exchange through bids and offer.
The NYSE is an auction open market, which be at one time completely traded by broker and specialists on the floor of the NYSE surrounded by downtown NY. Since after they hold gone to more electronic trade. However it is still an auctioned open market where on earth stocks are traded by the specialists by supply and constraint. The difference is that the NASDAQ souk have a spread that change as the open market maker move their bids and offer, the NYSE does not.
Companies that need to be in motion to an IPO stage hold to congregate a unmistaken criteria dictated by the different exchanges. The NYSE have extremely High criteria, while the NASDAQ is lower and easier to gain "listed". The OTC pink sheets will bring anything beside a describe, it's get the lowest lingo for an IPO.
Hope this help.
NASDAQ is across the world more "tech heavy" than the other US exchanges. This go fund to its history as have easier requirements catering to smaller technology start-up companies.

You must also follow that the Dow Jones you refer to is an index of simply 30 stocks and not adjectives are traded on the NYSE (MSFT is a DJIA stock traded on NASDAQ). So the DJIA is not a fitting representation of any expert exchange.

If you want to track the NYSE vs. NASDAQ for example try comparing the NYSE Composite Index to the NASDAQ Composite Index.

Corporations agree on which stock exchange to initiate an IPO on base primarily on greed :). Where they imagine they can return with the most money for their IPO. Usually this is analyzed near the sustain of the primary underwriters.
NASDAQ (National Association of Securities Dealers Automated Quotations system) is a fully electronic stock exchange where on earth at hand is no live trading floor such as on other exchanges (most popular is the NYSE).

Dow Jones (DJ) is not a stock exchange, to some extent it is a medium company founded by Charles Dow and Edward Jones within the behind schedule 1800's. History relationship below. Company is currently anyone acquire by NewsCorp (NYSE: NWS).

The Dow Jones Industrial Average is an index representing 30 industrial stocks. The stock in the index have changed over the ultimate 200 years masses times. It started out beside mining and guiderail roads, next steel and have evolved as the country have evolvd. DJ solely determines what companies are in their indexes. The DJIA is the most widely followed index, but does not represent the stock souk. The S&P 500, and the Wilshire 5000 are better overall souk indexes to see how the broader flea market is doing.


The following are US stock exchanges:

* Archipelago Exchange, merged near NYSE
* Arizona Stock Exchange, closed down
* American Stock Exchange (AMEX)
* Boston Stock Exchange (BSE)
* Chicago Stock Exchange
* Detroit Stock Exchange closed surrounded by 1976
* HedgeStreet
* NASDAQ
* National Stock Exchange (formerly the Cincinnati Stock Exchange)
* New York Board of Trade
* New York Stock Exchange (NYSE), merged next to Archipelago Holdings
* Pacific Exchange (PCX), taken over by Archipelago Holdings
* Philadelphia Stock Exchange (PHLX)
* Chicago Board Options Stock Exchange (CBSX), owned and operate by CBOE

Suggest pick up a copy of the Wall Street Journal (news stands/ book stores) (published by none other, Dow Jones), here is lots of info to backing spanking new and seasoned reader get the drift the indexes.

Market Movement:
This is a book right here. Indexes moves in different directions base on what the underline stocks are doing at the moment. Some indexes are concentrated, SOX (tech index), some are diversified (S&P500). See relationship.

IPO
This is established by the company and the investment bank bringing the operation to the pubic. NASDAQ have roughly be associated beside smaller technology stocks over the second 20-30 years (whereas NYSE have unanimously be associated next to ready companies (GE, Proctor and Gamble, AT&T, Coke, etc.). Now some NASDAQ stocks over this time are huge (intel, Microsoft, Dell, etc). They still trade on NASDAQ despite their size. The NYSE tried to woo intel and MSFT over to the Big Board (NYSE) in belated 1990's, and even reserved the ticker symbol "M" for Microsoft, by the company refuse. It catch's complicated here.

After the Bear Market of 2000-2003 (which I call when I be beside a prevailing Wall Street firm, BTW, 3rd week March 2000 - I said this is it. I didn't expect that big of a drop, but a huge correction yes), a quantity of tech firms own moved to the NYSE or are mortal tabled on the NYSE (recent IPO - WM Ware (VMW) be down on the NYSE. The basis is customarily meting min possessions requirements to achieve down, but also some relations don't want to be associate to the tech heavily built NASDAQ.

A lot of this index and placement have a big impact on how a stock trades, institutional holdings (pensions, mutl funds, quibble funds, etc,) it get remarkably cavernous here, but hope this help. No time to proof. Got to zzzz.
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