If you’ve always wanted to invest in American stocks, it can help first to get to know the different U.S. stock exchanges. As of February 2023, there are 13 registered exchanges currently operational in the U.S. However, only two of them — the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation System (Nasdaq) — are the major exchanges in the country.
Both NYSE and the Nasdaq facilitate trading listed U.S. stocks between buyers and sellers. In addition to U.S. stocks, you can also actively trade in other instruments like derivatives, commodities, and bonds on these two U.S. stock exchanges.
Founded in 1790, the New York Stock Exchange (NYSE) is headquartered at 68 Wall Street, New York. Around 24 merchants and stockbrokers came together and signed an agreement known as the Buttonwood Agreement, setting the stage for establishing the stock exchange. Despite such a humble beginning, the NYSE grew meteorically and is currently the world’s largest exchange, with more than 2,400 listed companies and an average trading volume of $123 billion per day.
The other U.S. stock exchange, Nasdaq, is relatively younger than the NYSE. Established in 1971, it was the first of the U.S. stock exchanges to introduce fully electronic trading. Currently, the Nasdaq is the second largest exchange in the world, with over 3,500 listed companies and a trading volume of more than $90 billion per day as of February 22, 2023.
Now that you’ve been introduced to these two exchanges let’s analyse some of the key differences between them.
With this, you should now be aware of the two major U.S. stock exchanges — the NYSE and Nasdaq. When dealing with U.S. stocks, remember that the stocks listed on Nasdaq are usually more volatile than the ones on NYSE. So, if you’re planning on investing for the long term, you may want to look at the stocks listed on the NYSE. On the other hand, if you’re interested in short-term trading, the Nasdaq may be a more suitable exchange.
Whatever your goal, Fi Money can help you invest in U.S. stocks seamlessly. With unique features like in-app explainers, curated collections, and useful filters, Fi makes investing in American stocks simple and easy. You can even invest in your preferred U.S. stocks without having to pay any brokerage.
The New York Stock Exchange (NYSE) is widely considered to be the primary American stock exchange.
Currently, the list of U.S. stock exchanges consists of 13 entities. Out of these 13, the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation System (Nasdaq) are the two major and most popular exchanges.
