Stock Nasdaq People Nyse Money York U.S Buy

In the United States, many people invest their money in the stock market. Two very popular and well known stock markets are NASDAQ and NYSE.

NASDAQ was "founded" (created) in 1971 and was originally known as the National Association of Securities Dealers Automated Quotations system. NASDAQ is based in New York City. Compared to other U.S. stock markets, NASDAQ lets people buy and sell shares in the most companies - approximately 3,200 companies are in NASDAQ. NASDAQ also has more "trades" (the buying/selling of one share) per day on average than any other U.S. stock market. Approximately two of every seven trades in the U.S. stock markets are done through NASDAQ.

NYSE is the New York Stock Exchange, and like NASDAQ, it is based in New York City. It is sometimes called the "Big Board." It has a greater "dollar volume" (the amount of money that flows through its transactions in a day) than any other stock exchange in the world. Its "global capitalization," or what it is worth worldwide, was $23 trillion in late 2006.

NASDAQ and NYSE "trade" (buy and sell shares) in very different ways. NASDAQ is now "entirely" (completely) electronic. Stockbrokers can buy and sell stocks by using their computers and they don't need to come to the NASDAQ offices.

In contrast, NYSE "relies" (depends) on "face-to-face interaction," meaning that people must be in the same room and speak with each other directly. NYSE trades are made through an "auction," where people shout information about what shares are available for sale and the stockbrokers make "bids" (offers) of how much money they're willing to pay, to buy the shares. The "highest bidder," or the person who is willing to pay the most money, wins.