THE WORLD OF FINANCE
BY MARK ROY
AIU

Abstract
This essay will go over and cover what the NYSE and the Nasdaq are all about and how they both are different. It will explain how they both operate and to see if they have similar traits or are totally different.

THE WORLD OF FINANCE The concept of any business venture is to find the best overall one that will work and fit your organization the best with the most or best outcome possible. When we are talking about finances and or how to make the most money, it may take some time and research to find what you are looking for. When we are talking about finances two better known organizations come to mind. The two are the New York Stock Exchange and Nasdaq. These two organizations have been around for some time now and are known to many that are within the business of making money and stocks as well. In 2007 Nasdaq formed with the Scandinavian Exchange group OMX and formed the Nasdaq OMX Group. They are both committed to technology and innovation across global markets. Nasdaq is a public company that is listed on the Nasdaq Global Select Market (NDAQ) and part of the S&P 500 since 2008. Also in 2007, NYSE Group and Euronext combined and formed to also have global financial markets. The New York Stock Exchange is a leading global operator of financial markets and a provider of innovative trading technologies, and is the only exchange operator in the Fortune 500. (Nasdaq, 2013). Both these organizations are similar because they are both well known in the trading sector and offer high-end services. Both are well known for their exchange of equities between buyers and sellers, they are both publicly traded organizations, and both are highly in demand on the stock exchange markets. Nasdaq’s components are basically electronics, technology and Internet-based companies, and this is the reason why Nasdaq is often determined as a high tech market. The NYSE is comprised of older and more established companies that are mostly vast industries, and blue chip organizations. Another difference between these two exchanges, is that the NYSE handles its transactions on the basis of physical trading, whereas, Nasdaq stocks are traded on the basis of a telecommunication network. The NYSE is said to be a typical market where people trade on behalf of their companies, while Nasdaq investors are facilitated with a direct contact system, in order for communication of the sellers and buyers. The costs required for investors to list their stocks on these two exchanges are also different amounts. The highest cost of investment for a listing on NASDAQ is $1,50,000. There is also an annual fee of $60,000. For the NYSE, the highest fee payable for a listing is $2,50,000, and the yearly fee is around $5,00,000. Therefore, in accordance to these figures, NASDAQ would be the most cost effective for further investment. Volatility aspects of the NYSE and NASDAQ vary. Volatility refers to the amount of returns one could expect from their investment. High volatility would mean more ups and downs as far as the security’s price is concerned. A lesser volatility indicates less fluctuation of the security’s price. NASDAQ stocks are considered to have high volatility, and the NYSE has more constant fluctuation within its prices. The Public Company Accounting and Investor Protection Act was a federal law governing corporate financial reporting. It was formed in 2002 because there were multiple accusations or scandals going on with high profile companies. To stop this and put a halt on these types of scandals to continue to happen they came up with this Investor Protection Act. These scandals also included deliberate, institutionalized and systematically planned accounting and auditing fraud. These acts were more than likely used to boost stock sales. As these scandals were going on and happening, the public eye was becoming more wary of having faith and confidence in the security of the different business markets. This is another reason why they passed this act to restore the public’s faith by providing protection to investors through the provisions in the Act which improved the accuracy, quality and transparency of financial reporting. Since they put this Act into place there have been many less accounts of account frauds and that the public has now a better overall background and faith within the system now. (Ehow, 2013).

References
NYSE. (2013). Retrieved from www.nyse.com
Nasdaq. (2013). Retrieved from www.nasdaq.com
Facts on Public Company Accounting Reform & Investor Protection Act. (2013). Retrieved from www.ehow.com