United States Stock Exchanges
Stock exchanges are marketplaces in which U.S. financial securities, commodities, derivatives, and other financial instruments are traded. While in the past, traders and brokers used to meet physically in a stock exchange building to trade stocks, now most of the financial trading happens electronically and automatically. Still, each exchange has its own unique listing requirements for companies that wish to join. As a baseline, stock exchanges require regular financial reports, audited earnings, and minimal capital requirements.
Companies that operate publicly through shareholders, or successful startups wishing to put up an initial public offering (IPO) must go through a stock exchange. By being listed, companies must quickly adjust their pace of operations: they become closely watched and scrutinized entities, as all their financials are open for potential investors to analyze. That being said, companies also benefit from increased visibility, and "going public" by getting listed on a stock exchange also increases a company's visibility, including attracting new clients, employees, and other partners who view the company's listing as a sign of success.
Major Stock Exchanges in the US
The two major U.S. financial securities markets are the New York Stock Exchange and Nasdaq.
New York Stock Exchange (NYSE)
TheNYSE is a stock exchange based in New York, founded in 1790. In April 2007, the New York Stock Exchange merged with a European stock exchange known as Euronext to form what is currently NYSE Euronext. NYSE Euronext also owns NYSE Arca (formerly the Pacific Exchange).
In order to be listed on the New York Stock Exchange, a company must have 400 shareholders and 1.1 million shares outstanding. Locals and visitors can also see the exchange's building on Wall Street in New York City—although more than 80% of trading is now done electronically.
The American Stock Exchange (AMEX) was also a popular New York-based stock exchange, which was acquired in 2008. Unlike the Nasdaq and NYSE, AMEX focused on exchange-traded funds (ETFs).
National Association of Securities Dealers Automated Quotation System (Nasdaq)
Unlike AMEX, theNasdaq is the largest electronic screen-based market. Created by the National Association of Securities Dealers (NASD) in 1971, it is popular because of its computerized system and relatively modern, as compared to the New York Stock Exchange. It currently offers lower listing fees than NYSE and includes some of the largest companies, such as technology giants Apple, Google, Amazon, and Microsoft.
AdditionalExchanges in the US
Some other smaller exchanges exist based on the city they are located in.
- Boston Stock Exchange (BSE): made up of the Boston Equities Exchange (BEX) and the Boston Options Exchange (BOX)and was acquired by Nasdaqin 2007
- Cboe Options Exchange (Cboe)
- Chicago Board of Trade (CBOT):owned and run by CME Group Inc.
- Chicago Mercantile Exchange (CME): owned and controlled by CME Group Inc.
- Chicago Stock Exchange (CHX)
- International Securities Exchange (ISE):includes ISE Options Exchange and the ISE Stock Exchange
- Miami Stock Exchange (MS4X)
- National Stock Exchange (NSX)
- Philadelphia Stock Exchange (PHLX)
FAQs
They exist in major markets globally, giving investors access to companies on the global market. In the U.S., there are two major exchanges: The New York Stock Exchange (NYSE) and the Nasdaq. There are many others around the world.
What are the US biggest exchanges? ›
The NYSE is located on Wall Street in New York City. The NASDAQ operates using an electronic system, but it also has a New York City headquarters on West 42nd Street. Nasdaq Inc. is also a publicly traded company under the ticker symbol "NDAQ" on its own stock exchange.
What are the two major US stock exchanges and how they differ? ›
The NYSE includes roughly 3,000 listed stocks, and their combined market cap exceeds that of any other stock exchange in the world. Nasdaq Stock Market. The Nasdaq exchange is the second-largest U.S. stock exchange. Owned by holding company Nasdaq (NDAQ -1.98%), the Nasdaq exchange has about 3,300 listed stocks.
What are the three major US stock indexes? ›
In the United States, the three leading stock indexes are the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite.
What is the most powerful stock exchange in the world? ›
New York Stock Exchange (NYSE) is the world's largest stock exchange located at 11 Wall Street, New York City, USA. NYSE has a market capitalisation of $26.2 trillion (world's biggest stock exchange) and has more than 2400 companies listed.
What is the difference between NYSE and Nasdaq? ›
The NYSE is an auction market, where investors buy and sell to each other through an auction. The Nasdaq is a dealer market, meaning participants trade through a dealer. Cost. The Nasdaq has lower listing fees than the NYSE, ranging from $55,000 to $80,000 for its lowest Capital Market tier.
What is the golden rule when it comes to the stock market? ›
IBD's golden rule of investing is this: Cut your loss if the stock falls 7% below your purchase price.
What is the fastest growing stock market in the world? ›
MERJ Exchange Limited, the pioneering operator of the Seychelles securities market 'MERJ EXCHANGE', has officially been named the fastest growing exchange in the world, according to the latest data released by the World Federation of Exchanges (WFE).
What is the world's biggest stock exchange located in the USA? ›
It is the largest stock exchange in the world by market capitalization. New York City, U.S. The NYSE trading floor is located at the New York Stock Exchange Building on 11 Wall Street and 18 Broad Street and is a National Historic Landmark.
Which stock exchange should I use? ›
NSE and BSE, Which is Better for You? BSE is more suitable for beginners, while NSE is more suitable for seasoned investors and traders. If you are an investor in India who want to invest in shares of new companies, BSE would be an ideal choice.
New York Stock Exchange
But it has remained the largest stock exchange in the world by market capitalisation ever since the end of World War I, when it overtook the London Stock Exchange. In 2012, the NYSE was taken over by an American futures exchange group, Intercontinental Exchange.
Does the Chicago Stock Exchange still exist? ›
NYSE Chicago, formerly known as the Chicago Stock Exchange (CHX), is a stock exchange in Chicago, Illinois, US. The exchange is a national securities exchange and self-regulatory organization, which operates under the oversight of the U.S. Securities and Exchange Commission (SEC).
Which index covers all US stocks? ›
Dow Jones U.S. Total Stock Market Index | S&P Dow Jones Indices.
How many stock exchanges are there in the USA? ›
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.
Which stock market index is the best indicator? ›
The S&P 500® Index.
Where are the 2 largest stock exchanges in the world? ›
The world's top two exchanges, the New York Stock Exchange (NYSE) and the Nasdaq, command 42.4% of global market capitalization. Despite the rapid growth of emerging economies, the U.S. continues to lead capital markets by a wide margin—even as countries such as India see considerable growth, surpassing the UK in 2023.
What is the difference between NYSE and NYSE Arca? ›
What Is the Difference Between NYSE and NYSE Arca? The New York Stock Exchange (NYSE) is a physical and electronic stock exchange, while NYSE Arca is an electronic communications network (ECN) used for matching orders.
How many different US stocks are there? ›
The 3 largest stock exchanges by market cap, the NYSE, Nasdaq, and Shanghai Stock Exchange, have 2,272, 3,432 and more than 2,853 tradable names, respectively, as of July 2024. Interestingly, there are differing accounts of the number of stocks available when you search o nline.
