Stocks. Similarities and Differences. Accounting, Finance, SPSS Essay

Stock Exchanges
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Stock Exchanges
Stock exchanges help investors, traders, government enterprises, and corporations run their businesses in a smooth and hassle-free manner, without having to worry about the underlying complexities of running a company. The major commodities of trade in a stock exchange include shares, securities, currencies, and even unit trust (Mansaku et al., 2017). Stock exchange contributes immensely to the economic growth and competitiveness of a country. Besides, stock exchanges impact vehemently other financial aspects that affect the economy such as cash inflows and liquidity. High share prices indicate a booming economy while decreasing stock prices is an indicator of an impending or imminent recession (Mansaku et al., 2017).
There are numerous stock exchanges in the world today with the United States bearing most and the leading stock exchanges with huge market capitalizations (TradingHours.com, n.d.). The New York Stock Exchange (NYSE) and National Association of Securities Dealers Automated Quotations (NASDAQ) stock exchanges are the American made stock exchanges that run the show in stock trading. The NYSE is a New York-based stock exchange that is presumed to be the largest of all stock exchange, owing to its outstanding market cap (NYSE, n.d.). An interesting history associated with NYSE is the Great Depression of 1929 that is insinuated to have resulted from overpricing of stock shares by the then stock market giant (Mansaku et al., 2017). Besides the Great Depression, NYSE has experienced other notable crashes including the 2008 financial crisis and the recent COVID-19 pandemic. Nonetheless, NYSE remains a high-end equity exchanger, courtesy of its tech-savvy open-outcry market model coupled with transparency in the stock market.
Similarly, NASDAQ is an American stock trading giant based in New York and trailing NYSE in rank based on the market cap as per the numerous stock market trackers. Unlike the NYSE, NASDAQ initiated the electronic means of the stock exchange with the main aim of eliminating the inefficiency of traders meeting physically and also to speed up the process of equity transaction (Mansaku et al., 2017). Another incident where NASDAQ exhibits exemplary brilliance with the use of the electronic stock market model is with the use of Small Order Systems (SOS) (Mansaku et al., 2017) to cushion against any uncertainties of stock market including crashes.
Similarities and Differences
One similarity that is pretty obvious on NYSE and NASDAQ is that their core business is to link sellers and buyers in the stock market particularly in the United States, Europe, and also across the globe. Surprisingly, they are both New York-based. However, the differences between the two stock market giants are rather a clear-cut especially in their mode of operation.
In terms of stock markets, NYSE allows buyers and sellers to engage physically whereas NASDAQ acts as an intermediary between the buyer and seller, and thus a label auction and dealer market for NYSE and NASDAQ respectively (Lobel, 2018).
NASDAQ is popularly known for providing an electronic model of stock transaction, with the option of automated trading (Lobel, 2018), eliminating the ...