List of the Major US Stock Exchanges

The United States boasts a robust financial market with several major stock exchanges facilitating securities trading. Among the notable exchanges are the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotations (NASDAQ), each with distinct characteristics. The Standard and Poor's 500 (S&P 500) index also holds significant influence. In this article, we will delve into the features and uniqueness of these exchanges, shedding light on the dynamic nature of the US stock market.

A List of Top US Stock Exchanges

There are different stock exchanges in the United States. The two significant ones are NYSE and NASDAQ.

New York Stock Exchange (NYSE)

NYSE, established in 1792, is in Manhattan, New York City. In 2007, NYSE merged with the European Stock Exchange, also known as Euronext, creating what is presently known as NYSE.

NYSE constitutes over 2500 stocks, and multiple blue-chip companies appear in the list. To be included in the NYSE list, an organisation must possess 400 shareholders and outstanding shares amounting to $1.1 million. From entrepreneurs to business icons, NYSE offers them an opportunity to raise funds and secure capital.

National Association of Securities Dealers Automated Quotations (NASDAQ)

Nasdaq is one of the most prominent exchanges after the NYSE. Founded in 1971, it gained momentum as a pioneer of electronic exchange, i.e. a computerised system to merge buyers with sellers and vice versa. Today, it caters to some of the largest corporations like Amazon, Apple, Microsoft, and Google, offering lesser lifting fees than the NYSE.

Over the years, NASDAQ emerged as an international marketplace for trading stocks. It lists over 3,300 firms and functions in 29 markets and five central stock depositories in Europe and the United States.

Difference between NYSE & NASDAQ

Though NYSE constitutes the most prominent market capitalisation, NASDAQ lists more companies. NASDAQ also has relatively limited regulations and requirements, making it advantageous for start-ups to join the NASDAQ wagon.

Standard and Poor’s 500(S&P500)

S&P500 comprises the 500 most influential US firms. Founded in 1957, S&P 500 is the first market cap-weighted index; thus, it efficiently captures market sentiments. The index tracks the performance of 500 listed companies. To be a part of the S&P 500 list, a company must meet a market cap of $13.1 billion(with most of the shares owned by the public) and should be a public company for at least a year.

Compared to NASDAQ, the S&P 500 index includes firms beyond the Information Technology sector. While IT forms nearly 60% of the NASDAQ list, it shares only 26% of the S&P 500 list.

Other Stock Exchanges in the US

Many stock exchanges exist in the US stock market, depending on the city they are situated. Check the list of such exchange platforms.

• The Chicago Board of Trade (CBOT)
• The Chicago Mercantile Exchange (CME)
• The Philadelphia Stock Exchange (PHLX)
• The Miami Stock Exchange (MS4X)
• The Boston Stock Exchange (BSE)
• The Chicago Stock Exchange (CHX)
• The Chicago Board Options Exchange (CBOE)
• The International Securities Exchange (ISE)
• The National Stock Exchange (NSX)

Conclusion

The US stock market is a thriving hub for investors, housing renowned exchanges such as NYSE and NASDAQ. While NYSE is distinguished by its long-standing history and prominent blue-chip companies, NASDAQ's electronic trading system and lower listing fees attract various corporations, especially in the technology sector. The S&P 500 index is a benchmark encompassing influential US firms across industries. Beyond these leading exchanges, other notable platforms like CBOT, CME, and PHLX contribute to the diverse financial landscape of the United States.

Fi: Invest in Top US Stocks at Best Forex Rates!

Discover Fi, the platform that opens the doors to investing in renowned US companies like Apple, Tesla, and Microsoft. With a user-friendly interface, in partnership with US-based regulated broker Alpaca, Fi simplifies the world of US stocks for all investors. Whether you're a beginner or an experienced trader, Fi provides in-app explainers and Curated Collections to guide your decisions. Enjoy industry-best forex rates when buying US stocks instantly on Fi. Start investing with Fi today and seize opportunities in the US stock market! 

How to invest in US Stocks from India

Investing in US stocks from India has never been easier. Whether you're looking to buy shares of global giants like Apple and Tesla or diversify with ETFs, there are two main ways to invest:
1️⃣ Direct Investment in US Stocks
2️⃣ Indirect Investment via Mutual Funds or ETFs 

Direct Investment in US Stocks 

For those who want to own stocks directly, here’s how you can get started:
a. Open an Overseas Trading Account
b. Sign up with a brokerage like Fi (powered by Alpaca) that enables Indians to invest in US stocks seamlessly.
c. Complete the KYC Process
d. Submit basic documents like PAN card, proof of address, and bank details to verify your account. 

Fund Your Account 

Transfer money from your Indian bank account to your US trading account via Liberalized Remittance Scheme (LRS) which allows remittance up to $250,000 per financial year. 

Start Investing 

Browse through 6,000+ US stocks and ETFs on Fi’s platform. The best part? US markets allow fractional investing, so you can start with as little as ₹100 instead of buying a full stock. 

Automate with US Stock SIP 

Fi also offers SIP in US stocks, just like in mutual funds! Pick your stocks, set a monthly investment amount, and let it run automatically. 

Indirect Investment via Mutual Funds or ETFs 

Process: 

Mutual Funds: Invest in Indian mutual funds that allocate assets to international markets. 

ETFs: Purchase units of ETFs listed on Indian stock exchanges that track international indices. 

Recent Regulatory Update: 

As of April 1, 2024, the Securities and Exchange Board of India (SEBI) has directed mutual funds to halt fresh subscriptions in overseas Funds. This action was taken as investments were nearing the $1 billion cap set by the regulatory authority for such funds.

Implications: 

Mutual Funds: Most subscriptions in schemes investing in overseas ETFs are currently paused.
ETFs: Investors can still trade ETFs on Indian exchanges, but it's essential to be cautious of tracking errors, which can cause the ETF's performance to deviate from the underlying index due to factors like currency fluctuations and fund management inefficiencies.
 

Frequently Asked Questions

1. How many stock exchanges are there in the US?

Currently, there are 13 stock market exchanges in the US. Two major ones are NASDAQ and NYSE.

2. What is a stock exchange?

A stock exchange is a platform where traders and stockbrokers can buy or sell bonds, shares of stock, securities, and other financial instruments.

3. What is a regional stock exchange?

In the US, regional stock exchanges refer to exchanges outside the nation's financial capital. Usually, when companies cannot meet the strict requirements of primary listings like the NYSE and NASDAQ, they opt for a regional stock exchange listing.

4. Where are the major stock exchanges in the US?

Both major US stock exchanges that influence the market, NYSE and NASDAQ, are located in New York. Additionally, there are 11 other regional stock market indices across the country. 

5. Are Nasdaq and NYSE the same? 

The NYSE operates as an auction market with designated market makers, while the Nasdaq functions as a dealer market where multiple market makers compete. Currently, the NYSE is owned by Intercontinental Exchange (ICE), whereas the Nasdaq is managed by Nasdaq, Inc., a publicly traded company. 

6. What are the three main stock exchanges?

The three largest stock exchanges in the world by market capitalisation are the New York Stock Exchange (NYSE), the NASDAQ, and the Shanghai Stock Exchange (SSE). 

7. What is the difference Dow vs S&P vs Nasdaq? 

All three are US stock market indexes which differ in the companies that comprise the index.

The Dow Jones is less volatile, emphasising blue-chip companies, while the S&P 500 provides a broader market view with moderate volatility. The Nasdaq, on the other hand, is dominated by tech stocks, tends to be more volatile with higher growth potential. 

8. What are the four types of stock markets? 

The four types of stock markets are: primary, secondary, derivative, and over-the-counter. The primary market allows companies to issue new shares, while investors buy directly or via underwriters. The derivative market enables trading in large lots through futures and options. Stock exchanges, like the NYSE and Nasdaq, facilitate stock trading, while the mutual fund market offers diversified, professionally managed investments.