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
The two major U.S. financial securities markets are the New York Stock Exchange and Nasdaq.
What are the 3 major markets? ›
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 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.
What is the primary stock exchange in the US? ›
For example, the New York Stock Exchange (NYSE) is considered the primary exchange of the United States but that doesn't take away the importance of Nasdaq. The latter is considered one of the largest exchanges in the world and home to the most important technology companies in the U.S.
What are the 3 largest stock exchanges in America? ›
The New York Stock Exchange (NYSE), the Nasdaq Stock Market, and the Chicago Stock Exchange are the three largest stock exchanges in the United States. Each of these exchanges has its distinct features and selling aspects that set it apart from the others.
What are the 4 largest stock exchanges in the world? ›
Top Stock Exchanges, by Market Cap
| Global Rank | Stock Exchange | Country |
|---|
| 1 | NYSE | 🇺🇸 U.S. |
| 2 | Nasdaq | 🇺🇸 U.S. |
| 3 | Euronext | 🇳🇱 Netherlands |
| 4 | Shanghai Stock Exchange | 🇨🇳 China |
21 more rowsOct 18, 2023
The New York Stock Exchange (NYSE) is the largest stock exchange in the world, with an equity market capitalization of over 25 trillion U.S. dollars as of December 2023.
What is the strongest stock market in the world? ›
New York Stock Exchange. The New York Stock Exchange (NYSE) is Established in 1792. The NYSE is the world's most valuable stock exchange by market capitalization and is found in New York City with companies representing many industries listed there.
Does the American stock exchange still exist? ›
NYSE Euronext acquired the AMEX in 2008 and today it is known as the NYSE American. The majority of trading on the NYSE American is in small cap stocks. The NYSE American uses market makers to ensure liquidity and an orderly marketplace for its listed securities.
Is it better to be listed on Nasdaq or NYSE? ›
The Nasdaq is known for technology and innovation and is home to digital, biotechnology, and other companies at the cutting edge. As such, stocks listed on the Nasdaq are considered growth-oriented and more volatile. In contrast, companies that list on the NYSE are perceived as more stable and well-established.
Volatility: If you wish to invest in stocks with the potential for quick price swings, the NASDAQ will be a good choice. If you want to invest in more stable stocks, the NYSE stocks are a better choice. Trading style: Unlike the NYSE, the NASDAQ does not have the option of using floor brokers.
Which is bigger Nasdaq or NYSE? ›
The NYSE is the largest stock exchange in the world, with a market capitalization of approximately $25 trillion.
What are the 2 largest US stock 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.
What are the oldest US stock exchanges? ›
Stock exchanges have a long history in the United States. In 1790, the Philadelphia Stock Exchange, originally named the Board of Brokers of Philadelphia, was founded. Two years later saw another big competitor—the New York Stock Exchange.
What was the 1st US stock exchange? ›
Philadelphia Stock Exchange (PHLX), now known as Nasdaq PHLX, is the first stock exchange established in the United States and the oldest stock exchange in the nation.
What are the top 3 biggest stock exchanges? ›
The New York Stock Exchange (NYSE) is the largest stock exchange in the world, with an equity market capitalization of over 25 trillion U.S. dollars as of December 2023. The following three exchanges were the NASDAQ, the Euronext, and the Shanghai Stock Exchange. What is a stock exchange?
What are the 5 largest stock markets in the world? ›
The largest stock exchange in the world is the New York Stock Exchange. Other large stock exchanges include the Nasdaq, the National Stock Exchange of India, the Hong Kong Stock Exchange, the Singapore Stock Exchange, and the Shanghai Stock Exchange.
How many NYSE exchanges are there? ›
The New York Stock Exchange operates five equities exchanges, each purpose-built to meet the needs of corporate and ETF issuers and offer greater choice to investors in how they trade.
What is the biggest physical stock exchange in the US? ›
Today, the New York Stock Exchange is the only major stock exchange in the world that still has a physical trading floor. “That is really what makes us different, our market model,” Asch said. “NYSE is a community of the world's greatest companies.
