Difference Between NYSE And NASDAQ

The New York Stock Exchange (NYSE) is the largest stock exchange in the world. In 2010, the NYSE listed the largest U.S. IPO of 2010, General Motors, which raised $16 billion and facilitated the largest secondary capital raise in history with the $70 billion secondary offering by NYSE-listed Petrobras (NYSE: PBR).

NASDAQ is the stock exchange for industry leaders, recognized as one of the largest U.S. stock markets.

What are the differences between NYSE and NASDAQ?

NYSE is the older of the two exchanges. Following are some differences between the two:
- It is more expensive to be listed on the NYSE. NASDAQ's fees are lower than the NYSE for initial listing, annual fees, and fees for the listing of additional shares.
- NASDAQ stocks tend to have more volatility than NYSE stocks.
- NYSE tends to dominated by larger, older, more established companies.
- Companies listed in the NASDAQ tend to be smaller or newer.
- NASDAQ's Global Select Market has financial and corporate governance listing standards that are more stringent than the NYSE.

In 2010, the NYSE attracted 14 Nasdaq transfers with a combined $41 billion market capitalization, including United Continental Holdings and Corporate Executive Board Co. The 2010 transfers from Nasdaq included various financial services companies that saw their long-term business strategies better aligned with the NYSE, including: Charles Schwab Corp., Knight Trading Group, GFI Group, and Main Street Capital.

* Next: The NASDAQ OMX Group
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