...A Discussion about the NYSE and NASDAQ Dannielle Gribble American Intercontinental University Abstract The purpose of this paper is to discuss both the differences and likenesses between NASDAQ and the NYSE. Also mentioned in this paper is a brief discussion about “The Public Company Accounting and Investor Protection Act of 2002” and its impact on public businesses as well as the investors thereof. A Discussion about the NYSE and NASDAQ NASDAQ and the NYSE are both popular in the sector of trading. NASDAQ represents National Association of Securities Dealers Automated Quotation and NYSE stands for the New York Stock Exchange. As I researched the NYSE and NASDAQ, I was only able to locate a few similarities between the two companies. The first similarity is that both NASDAQ and NYSE are companies that participate in the business of stock exchanging. The second similarity that both NASDAQ and the NYSE share is that they both match the necessity for stock supply and demand. The third similarity between NASDAQ and NYSE is that they both hold most of the equity that is traded in the US. That is made possible, in that, most of the trading that occur in the US takes place by either NASDAQ or the NYSE. The fourth similarity is that both companies offer high-end services for trading. While there are a few similarities between NASDAQ and the NYSE there are definite differences between the two. One difference is that NASDAQ is commonly recognized as the high-tech...
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...York Stock Exchange and Nasdaq listing requirements for comparative purposes. First, I went to the New York Stock Exchange Web site and saw how many round-lot holders are required to be listed, what the required public shares outstanding are, what the earnings requirements to be listed are, and what the average global market capitalization requirement to be listed is. After that I went to the Nasdaq Web site and learned what pretax earnings are required, what minimum bid price is required, how many market makers are required, how many publicly held shares are required, and what “Market Value” of the publicly held shares is required. Listing Requirements The main function of the stock market is to enable trade in the shares of public companies, which in turn reflect the performance of the companies whose shares are traded in the stock market. Stock markets are also a vital part of an economy or the economic system of a country or nation. Research has shown that most economies around the world, today, are judged by the performance of their stock markets. To trade in the stock market, a company has to be transparent about its fundamentals such as revenue, income, assets, liabilities, etc. as it allows the investing public to make fair assessments of the company’s market worth. These stock markets each, have their own listing of requirements. The purpose of this paper is to discuss the stock listing requirements of the New York Stock Exchange and NASDAQ for comparative purposes...
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...Chapter 8: Institutions and Procedures in Secondary Markets A. Exchanges and Floor Markets The Securities and Exchange Act of 1934 defined an exchange to be: any organization, association, or group of persons, whether incorporated or unincorporated, which constitutes, maintains, or provides a market place or facilities for bringing together purchasers and sellers of securities or for otherwise performing with respect to securities the functions commonly performed by a stock exchange as that term is generally understood, and includes the market place and the market facilities maintained by such exchange. An exchange is typically a physical or virtual meeting place drawing together brokers, dealers and traders to facilitate the buying and selling of securities. Thus, exchanges include the floorbased markets as well as many virtual meeting sites and screen-based systems provided by Electronic Communications Networks (ECNs). In the United States and most other countries, exchange transactions are executed through some type of auction process. Exchanges in the United States are intended to provide for orderly, liquid and continuous markets for the securities they trade. A continuous market provides for transactions that can be executed at any time for a price that might be expected to differ little from the prior transaction price for the same security. In addition, exchanges traditionally served as self-regulatory organizations (SROs) for their members, regulating and policing their...
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...2007 created the first truly global exchange group, and brought together major marketplaces across Europe and the United States, whose histories stretch back more than four centuries, including the New York Stock Exchange which was formed with the signing of the Buttonwood Agreement in 1792. NYSE Euronext is represented in the S&P 500 index, and is the only exchange operator in the Fortune 500 (Nyse Euronext, 2011). As one can see, the NYSE Euronext has been in operation for hundreds of years. It provides people with the ability to trade globally and locally. This overview of the NYSE Euronext provides information about the organization that will be used later in the paper. Next, the NASDAQ will be discussed and then a comparison of the two will follow. Created in 1971, the NASDAQ was the world's first electronic stock market and is now the largest U.S. electronic stock exchange. With approximately 3,300 companies, it lists more companies and, on...
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...didn’t care who or what. His scheme was revealed when he confessed in March 2009, when he pleading guilty to the charges against him, and was then sentenced to 150 years in prison. Madoff was successful for so long because he was respected, well-established and esteemed financial expert. His reputation and role in the foundation of the NASDAQ stock exchange. He was running a legitimate business and earned his investors' trust because he didn't tempt investors with unbelievable returns. No one paid any attention to the signals of Madoff’s scheme. He was extremely smart and charismatic. He gained his investors trust. He had his family work for him his wife worked at firm for a time creating an atmosphere of friendliness. Even though his family was not charge, they were suit. His sons and daughter were all under investigation, no one was charged as Madoff took all responsibility. Bernard Madoff who is now serving his sentence in Butner Federal Complex in North Carolina. In his words he “knew this day would come.’’ Questions 1. What are the ethical issues involved in the Madoff case? They are plenty of moral and ethical issues regarding this case. I think lying and stealing which is the biggest one. 2. Do you believe that Bernard Madoff worked alone, or do you think he had help creating and sub staining his Ponzi scheme? No I don’t think that he worked alone his lieutenant Frank DiPascali confessed of lying to investigators. However I believe his family had more to do than...
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...No one argues that Wall Street needs reforms after the financial debacle of 2008. But then it has always needed reforming, because it has been in a constant state of evolution for 218 years. And most of that reform was accomplished by Wall Street itself, not government. In the early days of Wall Street the trading that took place there was so limited that little regulation was needed. On Mar. 16, 1830, the New York Stock and Exchange Board--as the New York Stock Exchange was then called--traded a grand total of 31 shares. But the Civil War changed everything. As the national debt soared from $65 million to $2.7 billion, and as the economy expanded enormously to meet wartime needs, Wall Street exploded in size. By 1865 it was second only to London. But regulation was almost nonexistent. New exchanges had sprung to meet the hugely increased trading, and the curb market operated on Broad Street with no regulation whatever. Worse, New York state and city governments were utterly corrupt; an English magazine of the time reported that "in New York there is a custom among litigants as peculiar to that city, it is to be hoped, as it is supreme within it, of retaining a judge as well as a lawyer." When Cornelius Vanderbilt tried to buy enough common stock in the Erie Railway to control the company, members of the Erie board just started printing more and more of it. "If this printing press don't break down," one of the directors said, "I'll be damned if I don't give the old hog all...
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...expectations using daily market news and reports. While this strategy was successful to an extent, our group soon focused on diversifying our portfolio, not just through the quantity of equity held, but also by using correlations between firms. Our group began investing in many technology firms as well as some communications firms and futures. An industry analysis of these industries will be given as most of our stocks were held in these areas. Since there are technological advances almost daily, we felt the technology industry could be very promising. The automotive industry was also important due to Toyota’s recall and we quickly learned just how volatile the futures market could be. Portfolio statistics will also be given and a comparison of the NASDAQ Composite Index and our portfolio will be given. In the end, our final strategy consisted of diversifying our portfolio, using daily market news and expectations and by paying close attention to the futures market. Economic Conditions US Economic Analysis The U.S. economy is currently going through an economic recession that has been proceeding since the middle of 2008, which has contributed in producing a global economic downturn; this outcome transpired from a number of factors including the sub-prime mortgage crisis, falling home prices, investment bank...
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...First of all, Canadian companies need to maintain its relationship with the U.S. More than 70% of Canadian goods exported to US. Around 212 companies traded in both American and Canadian stock exchanges. About 153 Canadian stocks traded in NYSE market, and 52 Canadian companies listed in the NASDAQ market. In this case, Canadian companies have to report using US GAAP if they are traded in US stock market. By reporting under US GAAP, it increases comparability among companies. Also, in current, for those companies that traded in both countries, it prepare financial reporting in both IFRS and US GAAP. Adopting US GAAP reduces accounting and auditing costs for those companies. Besides, IFRS has some weaknesses. IFRS increases the complexity of financial reporting since it requires more footnote and has more disclosure policies compared to US GAAP. In fact, some Canadian companies are displeasure with the IFRS and some companies have announced their conversion to U.S. GAAP, effective January 1, 2012. For example, TransCanada, Enbridge and Fortis. In 2011,Magna switched to US GAAP when it otherwise would have been required to follow IFRS. Negative First of all, IFRS is more practical in Canada compared to US GAAP. There are over 1500 companies listed in TSE, but only around a hundred of them traded in US stock exchange. Besides, lots of Canadian companies are going global, and It increases the need in developing global relationship. Having one standard accounting language would...
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...------------------------------------------------- Top of Form Search Bottom of Form * Home Page » * Business and Management Business Ethics Case: Bernard Madoff In: Business and Management Business Ethics Case: Bernard Madoff Introduction In the year 1960, with money he earned installing sprinkler systems and as a lifeguard on the beaches of Long Island, Bernard Madoff founded “Bernard L. Madoff Investment Securities,” a “trading power” house that would become one of the largest independent trading operations in the securities industry (Washington, 2012). In the year 2000 his company ranked among the top trading and securities firms in the nation. By age 70, his name had become legendary; he was considered to be one of the most “influential spokesmen” on Wall Street. But on December 11, 2008, Bernard Madoff was arrested and charged “in a 20 year Ponzi scheme, which would come to be known as “the most infamous fraud in Wall Street history (Leonard, 2008; Washington, 2012).” Mr. Madoff pleaded guilty to all federal charges filed against him, which included the following: “11 felony counts, including securities fraud, money laundering and perjury (Washington, 2012).” Judge Denny Chin was in charge of the proceedings, and on June 29, 2009, Bernard Madoff, former chairman of the NASDAQ stock exchange, was sentenced to the maximum penalty of 150 years. This paper will seek to analyze this case in its multiple dimensions in order to identify all ethical issues and propose potential alternatives to the moral...
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...NYSE VS. NASDAQ By: Lavoy Freeman Financial Management Individual Project 1 Many people may make millions or lose everything they have by buying and selling stocks on exchange markets. The two most familiar exchanges are NYSE and NASDAQ. The New York Stock Exchange is a Euro-American national security exchange that operates multiple security exchanges. It maintains a leading position in global exchange products market. In 2011, NYSE-Euronext led the market in Exchange Traded Products with more than 450 new ETN listed. The market’s impressive growth has been a success from their rests of structuring nearly 85% of their leading venue for Exchange Traded Funds, Exchange Traded Notes, Exchange Traded Vehicles, and Warrant and Certificate trading. The product offering of the marketplace gives investors access of regulated listings as well as fast and innovative tools to quickly convert assets to cash. The trade of equities, futures, options, fixed-income and exchange-traded products comes from the company’s exchanges in Europe and the United States. NYSE Liffe is a derivative business operated by NYSE-Euronext, which offers comprehensive commercial technology along with connectivity, market data products and services. (NYSE-Euronext) NASADAQ is known as an American stock exchange market, which originally stands for National Association of Securities Dealers Automated Quotations. Other than NYSE, NASDAQ is the second-largest stock exchange by market capitalization...
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...Markets Running Head: Financial Institutions in the Stock Markets Financial Institutions in the Stock Markets: Market Capitalization, EPS Growth, and Investor Expectations Influence on Stock Prices Introduction Wild gyrations, extreme peaks and valleys, and fear and mania; this has been the epitome of the stock markets not just historically but over the last decade. Ten years ago, the NASDAQ was at an all time high exceeding 5,000 in March of 2000, the DOW was exceeding 11,000 and the general state of the economy was very favorable. Internet companies were being spawned by the hundreds and many of them turned once struggling entrepreneurs into instant millionaires. Internet IPO’s were the hottest thing since sliced bread and many thought there was no end to the rise of the new technology companies. Alas, right after the NASDAQ peaked in March 2000, a precipitous drop occurred and the markets plummeted. Just a year prior, the NASDAAQ returned nearly 90%, but one year later it plummeted 40% and continued dropping. The bear market of 2000-2002 erased all gains of the NASDAQ that to this day hasn’t even recovered half of its gains. The mood of investors and the American public quickly went from great to grim. The American and even global economy is strongly tied to the performance of our public companies. These public companies make up trillions of dollars in annual revenue. In fact, in the total market cap in 2008 of all publicly traded US companies was over $16...
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...NYSE – Euronext and the NASDAQ Name: Robert E. Smith American Intercontinental University FINA 310 – Financial Management Unit 1 Individual Project September 1, 2013 Abstract This report, providing information by study of financial management, makes a comparison of the New York Stock Exchange and the National Association of Securities Dealers Automated Quotations. We will provide a perspective difference between NYSE and NASDAQ by information used in making comparison. We will further describe the Public Company Accounting Protection Act of 2002, and provide a description of the law. Memo: To: Brokers Association From: American Intercontinental University Subject: NYSE and NASDAQ RE: Orientation Date: 08/31/2013 Introduction: In orientating our newest brokers, we provide a detailed introduction to the New York Stock Exchange and the National Association of Securities Dealers Automated Quotations, Identified best by most by abbreviation as NYSE, and NASDAQ, a report detailing the similarities of these two organizations and their differences. We further provide discussion of the “Public Company Accounting and Investor Protection Act of 2002 in describing this law as it was established and reason. Overview NYSE-Euronext and NASDAQ similarities: We begin by providing an overview of both exchange operators in making comparison determining what similarities there are in these operators of financial markets. First, the NYSE is stated to be a global operator...
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...What is market-making? What is market-making? Who is a market-maker? Market-making is aimed at infusing liquidity in securities that are not frequently traded on stock exchanges. A market-maker is responsible for enhancing the demandsupply situation in securities such as stocks and futures & options (F&O ). To understand this concept better, it would be helpful to have an idea about the existing screenbased electronic trading system. In this system , orders placed by buyers and sellers are matched by a computer system (run by stock exchanges). This system is beneficial for actively-traded stocks, but not for lesser-traded ones. Investors usually ignore thinly-traded stocks despite good fundamentals due to fears that they might not be able to trade more frequently in them. This is where a marketmaker comes into the picture. The introduction of the market-making facility could be a possible means to infuse liquidity into such shares. In overseas markets, a market-maker is usually a broker or an institution. As a result, there is an incentive for the broker to recommend securities for which he creates a market. How does market-making work? How does the market-maker benefit? A market-maker usually is responsible for enhancing activity in a few chosen securities (shares and F&Os ). In the process, the market-maker provides both a buy and a sell quote for his chosen securities. He profits from the spread between buy and sell quotes. For example, if the market-maker gives a bid-ask...
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... Businesses are funded using private funds, borrowed funds or by issuing stock. Revenue is generated by selling products/services. This income is used to pay for wages, equipment, etc. The difference between the Revenue and Expenses is what determines if the business generated a profit or loss. To determine if a business is making a profit, financial statements are prepared using guidelines set by GAAP (Generally Accepted Accounting Principles). GAAP has guidelines which dictate industry specific rules as well as regulations that all businesses have to practice, this helps insure uniformity in data and compliance to the Laws of Accounting. In order for a company to be able to trade stock, it has to be in compliance with NASDAQ rule book. If...
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...University November 17, 2013 IP 1 1. How are the NYSE and NASDAQ similar, if at all? In basic structure the NYSE and the NASDAQ are similar. They are both companies that can provide the service of trading stocks. Each company is open to the public and gains profits for their shareholders. NYSE and NASDAQ are both regulated by the Securities and Exchange Commission. Within each company the trading of stocks is done by traffic controllers, and these two companies account for a huge share of trading in the United States. With the use of these stock exchange facilities it allows public companies to raise capital. 2. How are the two exchanges different from one another, if at all? Both the NYSE and NASDAQ have differences from one another. The first major difference happens to be in their mission statements of the companies. The NYSE mission statement is as follows, “The mission of the NYSE is to add value to the capital-raising and asset management process by providing the highest-quality and most cost-effective self-regulated marketplace for the trading of financial instruments , promote confidence in and understanding of that process and serve as a forum for discussion of relevant national and international policy issues”. However the mission statement from NASDAQ is, “as the world’s largest exchange company, NASDAQ is driven to delivering multi-asset, multi-service capability across every major continent. NASDAQ provides forward thinking services and technology that have...
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