A stock exchange is a secure place where traders and investors buy and sell stocks of the companies listed on the exchange. Currently, there are two US stock exchanges that dominate the market — namely the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation System (NASDAQ).
The NYSE and the Nasdaq are among the largest stock exchanges in the world. Get to know them better before trading in the US share market.
Founded in 1792, the NYSE is the oldest stock exchange in America. As of February 2023, the exchange has over 2,400 companies listed on it and records an average daily trading volume of $123 billion. The primary index of the NYSE is the NYSE Composite, which includes all common stocks listed on the exchange.
Founded much later, in 1971, the NASDAQ is the second largest exchange in America. It is relatively more modern and computerized than the NYSE, and levies lower listing fees. The primary stock market index of the NASDAQ is the Nasdaq Composite, which encompasses the 3,000+ stocks listed on the exchange.
Aside from these indexes, the USA’s share market also has two other major indexes, namely the Dow Jones Industrial Average (DJIA) and the S&P 500. The DJIA includes the top 30 companies listed on American stock exchanges, while the S&P 500 tracks the 500 largest companies listed on the US stock exchanges.
In addition to the NYSE and the NASDAQ, there are other US stock exchanges that traders and investors should be aware of. Check out some of these below.
This should give you more clarity on the major stock exchanges in the US share market. Thinking of investing in US Stocks? Be up-to-date with the Fi Money app. Fi makes it extremely easy for Indian investors like you to buy US stocks listed on the NYSE and the NASDAQ. There are no brokerage fees to worry about, and the forex rates are also highly competitive.
The New York Stock Exchange (NYSE) is the oldest and the largest US stock exchange. In fact, the NYSE is not only the largest exchange in the US share market but also the biggest exchange on a global scale.
Although the NYSE and the NASDAQ operate similarly in the USA’s share market, there are many key differences between them. The NYSE has a physical and electronic location, while the NASDAQ is fully electronic. Furthermore, the NYSE is more stable and runs on the auction exchange model. The NASDAQ, on the other hand, is a dealer exchange. The listing costs between the exchanges also vary, with the NYSE being more expensive than the NASDAQ.
The two major US stock exchanges are the New York Stock Exchange (NYSE) and the NASDAQ. In addition to this, there are also over 10 other exchanges in the US share market.