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In this article, we will go through some questions like:
What is the stock exchange?
Which are major stock exchanges in the U.S.?
The past 2020 was a special year for the U.S. stock market, the biggest stock market in the world. Refer to the public health crisis and its correction, the U.S. stock market crashed at the end of February, but only kept a short period.
The market began to recover from April and return to January level until November and then keep hitting record new highs. So where can stocks be traded?
What is the stock exchange?
A stock exchange is a facility where stock brokers and traders can buy and sell securities, such as shares of stock, bonds, derivatives, and other financial instruments.
Initial public offerings of stocks and bonds to investors are done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market.
Major stock exchanges in the U.S.
The two major U.S. stock markets are the New York Stock Exchange and Nasdaq.
New York Stock Exchange (NYSE)
The NYSE, based in New York and founded in 1790, is the biggest stock exchange. In April 2007, the New York Stock Exchange merged with a European stock exchange known as Euronext to form what is currently NYSE Euronext.
The American Stock Exchange (AMEX) was once the third-largest stock exchange in the U.S., which focused on exchange-traded funds(ETFs) and was acquired in 2008 by NYSE Euronext.
In order to be listed on the NYSE, a company must have upwards of $4 million in shareholder's equity. 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.
National Association of Securities Dealers Automated Quotation System(Nasdaq)
Unlike AMEX, the Nasdaq, founded in 1971, is the largest electronic screen-based market and ranked second on the list of stock exchanges.
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 is more friendly to high-growth but still unprofitable technology companies. It has witnessed the growth of many tech giants including Apple, Google, Amazon, Microsoft and Tesla.
There are other smaller exchanges in the U.S., but most U.S. stock investors trade in NYSE and Nasdaq in which stocks of most large companies can be traded.
Source: Wikipedia, Investopedia
Editor: Bayo
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