Directions Answer the following questions on a separate docu

Directions: Answer the following questions on a separate document. Explain how you reached the answer, or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link above.

A. In your own words, please identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchanges. Identify one stock from each of the two stock exchanges.

Solution

Answer:

The two main stock exchanges of USA are NYSE and NASDAQ. Both are one of the world’s biggest stock exchanges and located in New York City. The following comparison chart shows the details of both the stock exchanges:

Basis

NASDAQ

NYSE

Established

1971

1817

Acronym

National Association of Securities Dealers Automated Quotations

New York Stock Exchange

Headquarter

Times Square, New York City

Wall Street, New York City

Public or Private

Public

Owned by publicly listed Intercontinental Exchange (ICE)

Process of Trade Execution

Broker contacts market maker or use online form

Broker contacts specialist floor trader or enters it into Universal Trading Platform (UTP)

Stock traded on NASDAQ and NYSE

A stock that is traded through NYSE is ADVANCE AUTO PARTS INC (AAP). Stock traded by NASDAQ is NIKE (NKE)