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What is the Difference Between the NYSE and Nasdaq?

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The NYSE and Nasdaq exchanges are worth more than $35 trillion in market capitalization, making up a sizable portion of the global equities market.

However, while they are both large American stock exchanges containing listings that are household names, they are also very different in how they work.

Comparing the NYSE and Nasdaq Exchanges

Today’s infographic from StocksToTrade.com explains the major differences between these two exchanges.

What is the Difference Between the NYSE and Nasdaq?

The NYSE and Nasdaq have significant differences, including the size and number of listings, how trades are made, and also how they are perceived by investors.

Size and Number of Listings

By the value of listed companies, the NYSE and Nasdaq are the two largest exchanges in the world.

The NYSE has over 2,400 companies that combine for $26 trillion in market capitalization. It’s also home to many of the big “blue chip” companies that have existed for decades, like Walmart, Exxon Mobil, or General Electric. This is partly because the exchange has existed since 1792.

Meanwhile, the Nasdaq has more companies than the NYSE, but has a wider spectrum in terms of the size of companies. Of course, the exchange is known for having the large tech-focused companies like Facebook, Google, and Amazon, but there are many smaller listings on the Nasdaq as well. In fact, there are around 1,200 smaller securities listed on the 46-year-old exchange with market caps of $200 million or less.

In total, there are over 3,800 companies listed on the Nasdaq, worth a total of $11 trillion in market capitalization.

Operational Differences

Aside from the obvious differences in the size and types of listings, the NYSE and Nasdaq also have significant operational differences.

The largest difference in the past was that the NYSE market was an auction market, while the Nasdaq was considered a dealer market. In the former, the highest bid for a stock is matched with the lowest asking price. In the latter, buying and selling happens in split seconds electronically through dealers. This difference has since changed as a result of trading technology, and both markets effectively connect buyers and sellers instantaneously in similar ways at the best price.

The Nasdaq has multiple market makers per stock – and some, like Apple even have 54 such registered makers. Meanwhile, the NYSE usually has one Designated Market Maker (DMM) per stock that ensures a fair and orderly market in that security. The NYSE also uses Supplementary Liquidity Providers (SLPs) as well.

Different Perspectives

For various reasons, both stocks are seen a little differently by investors, as well.

The NYSE is seen as the stock market for “tried and true” securities that have been, and will continue to be, the mainstays of the financial world for decades.

The Nasdaq, on the other hand, is seen as a place for growth-oriented tech stocks. It was where the action was in the Dotcom boom and bust, and it’s the place where the world’s largest tech stocks are listed today.

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Will Tesla Lose Its Spot in the Magnificent Seven?

We visualize the recent performance of the Magnificent Seven stocks, uncovering a clear divergence between the group’s top and bottom names.

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Will Tesla Lose Its Spot in the Magnificent Seven?

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

In this graphic, we visualize the year-to-date (YTD) performance of the “Magnificent Seven”, a leading group of U.S. tech stocks that gained prominence in 2023 as the replacement of FAANG stocks.

All figures are as of March 12, 2024, and are listed in the table below.

RankCompanyYTD Change (%)
1Nvidia90.8
2Meta44.3
3Amazon16.9
4Microsoft12
5Google0.2
6Apple-6.7
7Tesla-28.5

From these numbers, we can see a clear divergence in performance across the group.

Nvidia and Meta Lead

Nvidia is the main hero of this show, setting new all-time highs seemingly every week. The chipmaker is currently the world’s third most valuable company, with a valuation of around $2.2 trillion. This puts it very close to Apple, which is currently valued at $2.7 trillion.

The second best performer of the Magnificent Seven has been Meta, which recently re-entered the trillion dollar club after falling out of favor in 2022. The company saw a massive one-day gain of $197 billion on Feb 2, 2024.

Apple and Tesla in the Red

Tesla has lost over a quarter of its value YTD as EV hype continues to fizzle out. Other pure play EV stocks like Rivian and Lucid are also down significantly in 2024.

Meanwhile, Apple shares have struggled due to weakening demand for its products in China, as well as the company’s lack of progress in the artificial intelligence (AI) space.

Investors may have also been disappointed to hear that Apple’s electric car project, which started a decade ago, has been scrapped.

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