The Differences Between The NASDAQ and NYSE

The Differences Between The NASDAQ and NYSE


You can learn to invest pretty easily these days because there are so many resources available to you on the internet. You will learn about many different things as you invest, and you may be confused about why the NASDAQ and NYSE are different. You may think that these indexes seem the same, but you will find that the stock indexes are a bit different.

What Is The NYSE?

The New York Stock Exchange is the place where you see people ring the bell, and they do most of the recording for financial shows from the floor of this exchange. When the stock market crashed in 1929, it was this market that fell first. It is right on Wall Street, and it is the place where people used to come to make a name for themselves as investors. There are many stocks traded on this exchange, but it is not the only exchange in the world. The NYSE is the most notable exchange in the world, and technological advancements have evolved them from a floor trading based index to much more than that.

The NYSE is the place where most blue chip stocks are traded. You will not necessarily find tech companies here because they have an exchange that is meant just for them. There are quite a few different stocks that trade on the NYSE that you may be familiar with such as Chrysler, GE, and General Motors. You will find Ford on this exchange, and you will be quite happy with the progression in your investments on the NYSE as it mostly consists of proven companies that issue healthy dividends. People who are investing in the stock market may start here, but it is not their only option.

What Is The NASDAQ?

There are a lot of stocks on the NASDAQ, but it is mostly technical stocks such as Facebook and Google. The NASDAQ is a very large exchange that is issued many new stocks every year.. There are many people who will use the NASDAQ instead of the NYSE because they want to invest in tech, but there are others who invest in both because they have broad diversification.

Diversity Of Investments

The diversity of your investments is perhaps the most important thing when looking at your portfolio. If you invest all your money in one stock, you could lose it all at any time. Even if the stock just falls a little bit, you will lose too much money.

Your investments may span across both the NYSE and the NASDAQ, but you must ensure that you have taken a long and close look at the NASDAQ because all the new tech companies you see coming out with their IPOs are there. Facebook is there, and Google is in the same place. Snap is the company that owns Snapchat, and they have their stock on the NASDAQ.

Technology Rules

Technology is the ruler of almost all stocks in the modern day, and many people are moving on to things such as technology and clean energy. You may find a few clean energy companies that will help you earn money, and you will begin to learn quite a lot about which companies make the most money.

The NASDAQ Is Growing Quickly

The NASDAQ has been growing steadily over the past decade, and it has taken on the most companies of all the stock indexes, and companies are turning to the NASDAQ because they believe that it is the simplest place to issue their IPOs. Someone who is interested in investing in IPOs will find more happening on the NASDAQ than anywhere else.

How Do You Invest In The NASDAQ?

You can invest in the NASDAQ with help from a brokerage of some kind. The brokers that you work with will help you make your trades, and they will show you how to make more money by helping you out with stocks and investments that have the most potential through their trading tools and screeners. You may choose any brokerage firm you like, and you may make your investments online or over the phone(be aware of phone charges these days).

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