Whenever you think about the stock market, usually the first thing that comes to mind is the New York Stock Exchange, which in short is called the NYSE.
Another popular place or market to buy and sell financial securities is NASDAQ.
The truth is NASDAQ and NYSE are two well known places to exchange of stocks, bonds and other financial instruments in North America and by extension worldwide.
If you want to make lots of money by trading securities, you will have to understand that how both these places operate and which one is more suitable for you.
However, if you are really interested in trading on the NYSE, a good understanding of the mechanics should boost your chances of making a gain.
Where is the NYSE Located? If you choose NYSE investing, it will help you a lot to note that all trading on the NYSE occurs in a physical place situated in the city of New York.
The NYSE is usually depicted on television with some guys waving their hands and the bells ringing before the start of each exchange.
These guys that you see on TV are usually the ones transacting stocks and other financial instruments on the NYSE.
What Type of Market is NYSE? If you're planning on doing some NYSE investing, you should understand what type of market category the NYSE falls into.
There are two well known types of markets, namely the dealer's market and the auction market.
NASDAQ is a dealer's market, while NYSE investing is an auction market, where stocks are traded between individual investors.
In addition to this, when you are participating in NYSE investing, you will realize that the highest bidding price will be matched with the lowest asking price.
How is the market controlled? The NYSE investing is controlled by traffic control police officer.
Believe it or not, you will need order at exchange intersections.
These intersections are places where both buyers and sellers meet to conduct business, that is, the place where they meet to place their orders.
If you are participating in NYSE investing, you should understand that the exchange traffic controller is also called the market maker, who plays the vital role of transacting with sellers and buyers so as to maintain and sustain the flow of the trading traffic going consistently and constantly.
These market makers also ensure that the market is secured and facilitates the smooth and orderly running and operation of the market.
What should Companies Consider When Enlisting on the NYSE? Regardless of whether they enlist on the NYSE or NASDAQ, it will not severely affect which stocks investors decide to invest in.
However, the only thing that may be considered by investors is just a mere perception, thus making the decision to enlist on the NYSE of some significance.
Another important factor to consider when enlisting on the NYSE investing market is the issue of entry fees for companies; this is because NYSE charges an entry fee of about $250,000 in comparison to NASDAQ that only charges between $50,000 and $75,000 for entry fees.
No wonder so many small companies that have less initial capital flows are opting to trade on the NASDAQ stock exchange.