Two Different Stock Exchanges In The United States

Stocks
Your Name
Subject and Section
Professor’s Name
October 19, 2020
* 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.
There are several stock exchanges within the United States. Some of the largest ones include the New York Stock Exchange (NYSE) and the NASDAQ. On the one hand, the NYSE is located in the famous Wall Street in New York and was established as early as 1792. It is the larger exchange in terms of market capitalization, which is estimated to even be bigger as compared to other exchanges such as the NASDAQ, London, and Tokyo combined. In fact, due to its old age, NYSE has some of the oldest stocks that has been listed in the world such as Consolidated Edison (ED), Bank of New York Mellon Corporation (BK), and Proctor & Gamble (PG), among others CITATION Yao16 \l 1033 (Yao, 2016). Finally, it is also worth noting that the NYSE even allows foreign companies from listing in the exchange provided that they adhere with the requirements set forth by the US Securities and Exchange Commission. One famous stock in the NYSE is Agilent Technologies Inc (A).
On the other hand, NASDAQ (aka Nasdaq Composite) is an exchange that is more famously known for having some of the largest technology firms today. It is also located in New York City at One Liberty Plaza and is founded in 1971. This shows how younger this exchange is as compared to the NYSE which has been in existence for centuries. Nonetheless, when it started, NASDAQ initially featured over-the-counter securities with little of other types. However, as a part of its history and expansionary policy it allowed for any type of listing although it is noticeable that it attracts technology firms such as Google, Microsoft, and Intel, among others. Despite having a lower market capitalization as compared to NYSE, NASDAQ has the greatest number of companies with over 3000 stocks listed compared to 2800 CITATION Cornd \l 1033 (Corporatefinanceinstitute.com, n.d.). Finally, even though NASDAQ allows for the listing of foreign companies, it seems that less of these companies are attracted to the rules of trade and policies of this exchange. One stock in the NASDAQ is Apple (AAPL).
* Using the two stocks you identified, determine the free cash flow from 2015 & 2016. What inference can you draw from the companies’ free cash flow?
Identifying Free Cash Flow (FCF) is important in order to determine a company’s financial performance. Generally, this concept allows investors to understand how much cash a company is retaining after “accounting for cash outflows to su...