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Unit 1 the World of Finance

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The NYSE, also known as the New York Stock Exchange, was formed by twenty- four New York City stockbrokers, in 1792. (Money-Zine, (2012). For a company to be listed in the NYSE, it must have in excess of 2,200 shareholders, and have an average daily trading volume of at least 100,000 shares. In other words, the company has to be big, very profitable, in order to be listed. NASDAQ is another well known stock exchange. It was developed in 1971, and is the first electronic stock exchanged in the world. It was also recognized, as the most technologically-savvy stock exchange in the world. (Money-Zine, (2012). In the 1990’s NASDAQ, was seen as a competitor for NYSE, and beat the NYSE in annual shares traded. To compete, further, with the NYSE, NASDAQ merged with American Stock Exchange, which created the NASDAQ-AMEX Market Group. The companies, still operates as two separate stock exchange companies, but are still merged together and able to compete with NYSE. (ADVFN, (2012).
The NYSCE, and NASDAQ, are both stock exchange companies. The purpose of the stock exchange is to compete with many other companies for investor’s money. In order to use the NYSE, the company has to be very big, or very profitable, but there are other exchanges that will help with the smaller companies. Another difference is that the NASDAQ uses a more virtual effect on the trading. The NYSE, uses its floor, in making stock markets sales, where as the NASDAQ, uses network computers that allow for extremely efficient trading. The NYSE, and the NASDAQ, both have a matrix approach to be listing standards.
The Public Company Accounting Reform and Investors Protection Act of 2002, is also known as the Sarbanes-Oxley Act of 2002. It was created and designed, to help create financial reporting guidelines, which all public companies, must comply with, regardless of the size of the company. It was

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