You may already know what a stock ticker is—the letters that represent a company on the stock market. What about a stock exchange?
In the US, there are a couple major exchanges that companies can list on when they go public. Let's uncover each one.
What is a stock exchange?
Real quick: A stock exchange is a centralized place where companies sell publicly traded securities. Some exchanges are more popular than others, making them a major exchange.
The two standard stock exchanges in the US
Here are the major stock exchanges you should know about before starting to invest in US stocks:
New York Stock Exchange (NYSE): The NYSE is the biggest equities exchange in the world. It also uses an auction system unlike others, which have transitioned to electronic systems.
Nasdaq Exchange (NASDAQ): The NASDAQ is an electronic exchange that focuses on tech-based companies.
Each exchange has its own rules and regulations, like minimum stock price and board transparency. They also charge initial public offering (IPO) and annual listing fees (which add up in addition to fees from the Securities & Exchange Commission). Companies can (and do) get delisted from major stock exchanges for breaking rules.
Who owns these exchanges (& where are they located)?
The parent company that owns the NYSE is Intercontinental Exchange (ICE). ICE took the NYSE over in 2007 when it merged with a European exchange called Euronext. The CEO of ICE is Jeff Sprecher, husband of former US Republican Senator Kelly Loeffler. 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. CEO Adena Friedman spearheads the company.
If a stock isn't on a standard exchange, where is it?
Some US companies trade on over-the-counter (OTC) markets like the Over-the-Counter Bulletin Board and Pink Sheets.
These exchanges often represent cheaper stock from smaller companies. Trading volume is also lower, making the stocks on the OTC markets more volatile than those on standard exchanges. If a stock doesn't adhere to major exchange rules, it can get delisted.
Rather than a centralized exchange, OTC markets operate using a broker-dealer network.
Are there any Halal stock exchanges in the US?
In general, buying stocks is not haram because you're just owning a small percentage of a company. There aren't any Halal stock exchanges in the US, but there are Halal funds that include a bunch of Halal individual stocks. For example, there's the S&P 500 Shariah Index Series, which is up more than 33% in the 12 months ending November 17, 2021.
FAQs
The two main U.S. exchanges are the NYSE and the Nasdaq. Companies listed on either of these exchanges must meet various minimum requirements and baseline rules concerning their boards. New York Stock Exchange.
What are the major stock markets in the US? ›
U.S. Market Data
| Name | Last | Chg |
|---|
| NASDAQ Composite Index | 15,657.82 | -325.26 |
| S&P 500 Index | 5,035.69 | -80.48 |
| Global Dow Realtime USD | 4,548.07 | -9.35 |
| Gold Continuous Contract | $2,296.70 | -6.20 |
3 more rowsA stock exchange is a place where people buy and sell stocks and shares. The stock exchange is also the trading activity that goes on there and the trading organization itself. The shortage of good stock has kept some investors away from the stock exchange.
What are the 3 US stock exchanges? ›
The 3 major stock exchanges in the US
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.
How many US stock exchanges are there? ›
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.
What major is stock market? ›
The best majors for a stock trader include business, finance, economics, accounting, computer science, marketing, liberal arts, psychology, electrical engineering, and management. According to experts, these majors provide a solid foundation for a career in stock trading.
What are the two largest stock markets in the United States? ›
The two standard stock exchanges in the US
- New York Stock Exchange (NYSE): The NYSE is the biggest equities exchange in the world. ...
- Nasdaq Exchange (NASDAQ): The NASDAQ is an electronic exchange that focuses on tech-based companies.
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
Stock Exchange is a place where securities are traded (bought and sold) according to specific rules and regulations. These rules are formulated by regulatory bodies which oversee the trading activities in stock exchanges. The securities traded in stock markets are shares, debentures and corporate bonds.
What are the major functions of the stock exchange? ›
Q.3 What is the purpose of the stock exchange? The purpose of a stock exchange is to help in capital formation and act as intermediary between companies and investors by providing a common platform for exchange.
A stock exchange is a place where investors can buy and sell different investments. Most stock exchanges today use electronic trading.
What is the largest stock exchange in the US? ›
The New York Stock Exchange (NYSE), the largest in the world, plays an important role in the U.S. financial system, but also reflects and influences global trends.
What is the name of the US stock market? ›
The New York Stock Exchange. NYSE.
What is the largest stock exchange in the Americas? ›
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is the largest stock exchange in the world by market capitalization. New York City, U.S.
What are the top 3 biggest stock exchanges? ›
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 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.
What is Dow and Nasdaq? ›
The Nasdaq Composite, the S&P 500, and the Dow Jones Industrial Average (DJIA, or Dow) are three indexes that are used to measure market performance. The Nasdaq Composite and the S&P 500 cover more sectors and more stocks in their portfolio, while the Dow is a blue-chip index for 30 stocks.
What are the three largest stock markets in the US? ›
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?
