...NYSE and NASDAQ American Intercontinental University Online Abstract The NYSE and the NASDAQ offer people the opportunities to purchase interest in various companies they feel are doing well and are going to continue doing well. Investors must understand while there are similarities between the two trading platforms there are several differences to the types of shares and the way they are purchased. Investors are now more protected against fraudulent and dishonest actions performed by companies who try to make their company appear healthier than it really is. NYSE and NASDAQ The potential of making large sums of money in short periods of time can be achieved through the well-minded trading of stocks or equities on a stock market. Two of the most well-known stock trading providers or platforms are the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation (NASDAQ). If a person is deciding to become an investor they must understand while these two trading platforms have similarities they operate in different realms. Before determining the differences of the NYSE and the NASDAQ the similarities must be explained. Both the NYSE and the NASDAQ offer high-end services and are known for their exchange of stocks in the primary and secondary market (NASDAQ vs the NYSE, 2012). Both trading platforms offer real time details of the daily stock exchanges so investors are able...
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...that sell their stock do so to raise capital for new product lines, expansion into new markets, or expanding existing facilities or building new facilities. These stocks are bought and sold, also known as traded, in the stock market. Two of those markets are the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation System (NASDAQ) (Career Education Corporation [CEC], 2012). NYSE The NYSE is a security exchange that trades stocks and bonds between investors. Corporations provide their stocks and bonds to be traded on the exchange to build capitol. The NYSE has a designated specialist for each stock, the stock is trade on what they call the trading floor at the NYSE building in New York, and this is an auction market. The designated specialist is a human shield designed to protect the stocks in case there are problems with the electronic trading (Brooks, R., 2013, p. 186). The NYSE has been a public exchange since 2006 but began trading in 1792 in New York City with only five securities to trade. On the trading floor trades are made between buyers and sellers by matching their bid and ask prices. An investor who wants to buy stock on the NYSE has their broker either call an order to the floor or enter it into the DOT system. The designated specialist for that stock, which is an employee of the listing company, then matches the...
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...Management UNIT 1 IP NASDAQ VS NYSE SHANIKA BUCKNER AIU ONLINE Introduction The purpose of this paper is to inform a group of stock brokers about the NYSE and the NASDAQ. In this paper I will explain the similarities and the differences of the NYSE and NASDAQ stock exchange. Also in my own words, I will explain what the Public Company Accounting and Investor Protection Act of 2002 are for. BODY Although NASDAQ AND NYSE operate differently, they both have many similarities, before I began discussing the similarities let me tell you what NASDAQ and NYSE stands for; NASDAQ stands for National Association of Securities Dealers Automated Quotation, and NYSE stands for the New York Stock Exchange. Some similarities that these two organizations have are that they are both very well known in the trading sector and they both offer high end services. NASDAQ AND NYSE are two organizations that are well known for their exchange in equities between buyers and sellers. Another similarity is that they are both organizations that trade publicly, and in the stock exchange market, they are both in highly demand. Just like there are similarities, there are also differences. NASDAQ is usually determined to be a high tech market because its components are basically electronics, technology, and Internet based companies, whereas NYSE comprises of older and more companies that are established, usually vast industries, and blue chip organizations. Although both NASDAQ and NYSE are both stock...
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...There are many ways that the New York Stock Exchange (NYSE) and National Association of Securities Dealers Automated Quotations (NASDAQ) are similar. These two trading centers make up for the bulk of trade that is connect to equities in the United States and European stock market. The two stock exchange centers concentrate in trading stock options, cash equities, fixed incomes and also exchange traded goods. In order to keep the market current, both exchanges use what is called traffic controllers. The traffic controllers of both exchanges deal with specific traffic problems and, in turn, make it possible for their markets to work. On the NASDAQ, the traffic controller is known as the market maker, who, we already mentioned, transacts with buyers and sellers to keep the flow of trading going. On the NYSE, the exchange traffic controller is known as the specialist, who is in charge of matching buyers and sellers together. A few of the similarities are that during trades, both exchanges use an electronic screen because of the fact they the screen based electronic stock exchanges. The Stock Exchange Commission synchronizes these two exchanges and joins in the activity of trading stock equities. As you can see, there are a number of similarities between the two exchanges however; there are also a number of differences between the two as well. One difference is that the NASDAQ is considered a high tech trading market because most of their components are electronics...
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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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...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 trillion compared to the $13 trillion of GDP. It is clear that publicly traded US companies drive the global economy (GDP vs. Market Cap from The Daily Reckoning). In this essay I will examine the role that publicly traded US companies play in the stock markets...
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...Date: July 12th, 2011 Student Name: Eleanor Luu Instruction Name: Professor Stephen Itnyre Course/Class: ACC115003VA016-16-001 Assignment 1: Stock Analysis This Stock Analysis assignment shows six (6) differences Stock companies: APPL (NASDAQ), NIKE (NYSE), SAP (NYSE), MSFT (NYSE), INTU (NASDAQ), and SGPYY (LSE) in daily historical price from 3/1/11 through 5/31/11. 1 - The summary various accounting systems that each firm provides: ➢ Peachtree is a Sage product that and use by SGPYY, MSFT, and SAP AG ➢ QuickBook is an Intuit product that use by APPL, NIKE, and INTU QuickBooks holds 89 percent of the small business accounting software market in the United States. However, Sage’s small business product, Peachtree, is another popular product that has always given QuickBooks a run for its money. They both have their strengths and weaknesses. Here are the key comparisons from a general standpoint. ❖ Peachtree • It offers a tight integration between desktop accounting and online store. • It’s the best choice for Web-minded small businesses. • Stronger inventory management • Job costing capabilities • Over 140 customizable reports • Work flow management • Scalability/multi-user performance • Through GAP checks for duplicates and suspicious activity • Can accommodate up to 40 users, 10 more than QB • Easy to navigate. • Installation and Configuration...
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...1. Agency problems – why they arise, ways to reduce them (board of directors for ex.) • Corporations are owned by shareholders that want managers to maximize their wealth. • Agency problems arise due to the separation of ownership and management * Managers may have conflicts of interest with shareholders (maybe they want to maximize their own wealth rather than the shareholders wealth) – This is called an Agency Problem because the managers are acting as agents for the shareholders. Examples of agency problems: 1. Purchasing private jets for personal use 2. Overindulging in expense account dinners 3. Avoiding risky projects because they are worried about the security of their jobs 4. Manipulating accounting earnings to increase their compensation Reducing Agency Problems The goal is to align the interests of managers and shareholders. This can be accomplished through: • Compensation plans tied to the performance of the firm (assuming of course that the reporting of the numbers is not fraudulent!). It is best is performance is measured by stock value or other cash flow measure. • The Board of Directors oversees management and can fire them -problems with the board of directors lack of independence arises here. Oftentimes the Board and top management are part of (as they call it) “the old-boy network”. They are related, or play golf together, their families know each other, they socialize together, and most likely they all make money off of each other...
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...CAPITALIZATION Master of Business Administration Master Business Administration for Executive (Chiang Mai) Faculty of Business Administration Chiang Mai University March, 2012 Facebook’s Capitalization Report by Thanassorn Boontarika Pinnarat Sathit Saowaluk Hathairat Ratanasirisap Pongpaew Suriyachot Chobpimai Sangkuan Yosdech Code Code Code Code Code Code 541532126 541532137 541532142 541532155 541532164 541532176 Report to Dr. Chaiwuth Tangsomchai Course work 702711 Financial Management) Master of Business Administration for Executive(Chiang Mai) Business Administration Chiang Mai University March, 2012 - - Index - Page Chapter I Introduction & Objective 1.1 Introduction 1.2 Objectives Chapter II Company 2.1 Facebook, Inc. Profile 2.2 The Corporate Mission 2.3 Executive Officer and director 2.4 Facebook’s Shareholder 2.5 Facebook Milestone 2.6 Facebook Business 2.7 Competition 2.8 Revenues Stream 2.9 Facebook Market Opportunities 2.10 Facebook Strategy 2.11 Summary of Risk Factor Chapter III Facebook Financial Report 3.1 Consolidated Balance Sheets 3.2 Consolidated Statement of Income 3.3 Basic Earning Per Share 3.4 Pro-forma Earning Per Share 3.5 Consolidated Statement of Cash Flow 3.6 Consolidated Statement of Stockholder’s Equity 3.7 Dividend Policy Chapter IV Facebook Initial Public Offerings(IPOs) 4.1 IPOs Advantage 4.2 Preparing to go to Public 4.3 Facebook IPOs 4.4 Facebook IPOs Underwriting Company 4.5 Facebook IPOs Counsel Company 4.6 Facebook...
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...Theory Primary vs Secondary Market The primary market is direct from the company issuing the stock or bond to the buyer. The secondary market is after the initial public offering, people buy and sell on the stock exchange, NASDAQ or over the counter market or the pink sheets. For example, IBM issues some new stock. Someone buys it (usually an underwriter, but maybe the public). Assuming IBM sells direct to the public and I buy it for $50 and it goes up to $ 60 and you want to buy it and I want to sell it. So I sell through a broker and you buy through a broker which represents a sale in the secondary market. The word "market" can have many different meanings, but it is used most often as a catch-all term to denote both the primary market and the secondary market. In fact, "primary market" and "secondary market" are both distinct terms; the primary market refers to the market where securities are created, while the secondary market is one in which they are traded among investors. Knowing the functions of the primary and secondary markets is key to understanding how stocks trade. Without them, the stock market would be much harder to navigate and much less profitable. We'll help you understand how these markets work and how they relate to individual investors. Primary Market The primary market is where securities are created. It's in this market that firms sell (float) new stocks and bonds to the public for the first time. For our purposes, you can think of the primary market...
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...Mini Case (p. 45) Assume that you recently graduated and have just reported to work as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the firm’s clients is Michelle DellaTorre, a professional tennis player who has just come to the United States from Chile. DellaTorre is a highly ranked tennis player who would like to start a company to produce and market apparel she designs. She also expects to invest substantial amounts of money through Balik and Kiefer. DellaTorre is very bright, and she would like to understand in general terms what will happen to her money. Your boss has developed the following set of questions you must answer to ex- plain the U.S. financial system to DellaTorre. a. Why is corporate finance important to all managers? Corporate finance provides the skills managers need to identify and select the corporate strategies and individual projects that add value to their firm and forecast the funding requirements of their company, and devise strategies for acquiring those funds. b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. Business Organization from Start-up to a Major Corporation: Sole proprietorship, Partnership and Corporation. Form of Business: Characteristics: Advantages: Disadvantages: Proprietorships Unincorporated business owned by one individual. • Easily and inexpensively formed • It is subject to few...
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...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 behavior with respect to a variety of rules and requirements. However, the Financial Industry Regulatory Authority (FINRA) has provided for self-regulation of the two major U.S. stock markets since the 2007 consolidation of the National Association of Security Dealers (NASD) and the Member Regulation, Enforcement and Arbitration operations of the New York Stock Exchange. NYSE Euronext and its...
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...Introduction Wouldn't you love to be a business owner without ever having to show up at work? Imagine if you could sit back, watch your company grow, and collect the dividend checks as the money rolls in! This situation might sound like a pipe dream, but it's closer to reality than you might think. As you've probably guessed, we're talking about owning stocks. This fabulous category of financial instruments is, without a doubt, one of the greatest tools ever invented for building wealth. Stocks are a part, if not the cornerstone, of nearly any investment portfolio. When you start on your road to financial freedom, you need to have a solid understanding of stocks and how they trade on the stock market. Over the last few decades, the average person's interest in the stock market has grown exponentially. What was once a toy of the rich has now turned into the vehicle of choice for growing wealth. This demand coupled with advances in trading technology has opened up the markets so that nowadays nearly anybody can own stocks. Despite their popularity, however, most people don't fully understand stocks. Much is learned from conversations around the water cooler with others who also don't know what they're talking about. Chances are you've already heard people say things like, "Bob's cousin made a killing in XYZ company, and now he's got another hot tip..." or "Watch out with stocks--you can lose your shirt in a matter of days!" So much of this misinformation is based on a...
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...Stock Basics Tutorial http://www.investopedia.com/university/stocks/ Thanks very much for downloading the printable version of this tutorial. As always, we welcome any feedback or suggestions. http://www.investopedia.com/investopedia/contact.asp Table of Contents 1) 2) 3) 4) 5) 6) 7) 8) 9) Introduction What Are Stocks? Different Types of Stock How Stocks Trade What Causes Prices To Change? Buying Stocks How to Read a Stock Table/Quote The Bulls, the Bears, and the Farm Conclusion and Resources Introduction Wouldn't you love to be a business owner without ever having to show up at work? Imagine if you could sit back, watch your company grow, and collect the dividend checks as the money rolls in! This situation might sound like a pipe dream, but it's closer to reality than you might think. As you've probably guessed, we're talking about owning stocks. This fabulous category of financial instruments is, without a doubt, one of the greatest tools ever invented for building wealth. Stocks are a part, if not the cornerstone, of nearly any investment portfolio. When you start on your road to financial freedom, you need to have a solid understanding of stocks and how they trade on the stock market. Over the last few decades, the average person's interest in the stock market has grown exponentially. What was once a toy of the rich has now turned into the vehicle of choice for growing wealth. This demand coupled with advances in trading technology has opened up the markets so that...
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...investing in this stock. Company Background With Life Cycle Analysis A Texas-based energy company that began in 1995 as a small intrastate natural gas pipeline company, Energy Transfer is now one of the country’s fastest-growing natural gas transportation companies with widespread business operations that are highly regarded throughout the energy industry and the investment community. Energy Transfer owns and operates a diversified portfolio of energy assets. Their operations include the gathering, treating, processing, marketing and transportation of natural gas. The company is also one of the nation’s largest distributors of propane. Energy Transfer offers two separate publicly-traded securities on the New York Stock Exchange (NYSE): Energy Transfer Partners, L.P. (ETP) - a Master Limited Partnership; and Energy Transfer Equity, L.P. (ETE) - a "GP" Master Limited Partnership Both offer a distinct...
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