How do I invest in the Nasdaq or the NYSE? Is it even possible? Would I want to?

By Peter Cherewyk AAA
A:

The Nasdaq and the NYSE are stock exchanges that trade securities. Nasdaq stands for National Association of Securities Dealers Automated Quotation and NYSE stands for New York Stock Exchange. (For more information about this topic, read our related article The Tale of Two Exchanges: NYSE and Nasdaq.)

Like any public company, these stock exchanges issue shares for investors to buy. The NYSE is owned by NYSE EuroNext Inc. and issues shares under the ticker symbol (NYSE: NYX). The Nasdaq is owned by Nasdaq OMX Group Inc.and its shares trade under the ticker symbol (Nasdaq: NDAQ).

As with the decision to invest in any company, research into the future profitability of the business must be undertaken. An investor would want to examine fundamental and technical characteristics before calling a broker and placing an order. (To learn how to explore stock values, see The Guide to Stock Picking Strategies or Blending Technical and Fundamental Analysis.)

RELATED FAQS

  1. Does a broker always have to buy a stock if I want to sell it?

    There are certain times when a broker must purchase the stock that you are selling. For example, if the broker is a market ...
  2. What is the difference between the Dow and the Nasdaq?

    Because of the way people throw around the words "Dow" and "Nasdaq," both terms have become synonymous with "the market," ...
  3. What is the difference between a broker and a market maker?

    A broker is an intermediary who has a license to buy and sell securities on a client's behalf. Stockbrokers coordinate contracts ...
  4. What is the downtick-uptick rule on the NYSE?

    To ensure orderly markets, the New York Stock Exchange (NYSE) has a set of restrictions that it can implement when experiencing ...
RELATED TERMS
  1. Float Shrink

    A reduction in the number of a publicly traded company’s shares ...
  2. Capital Strike

    A refusal of businesses to invest in a particular sector of the ...
  3. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  4. Gray Market

    An unofficial market where securities are traded. Gray (or “grey”) ...
  5. Floating Stock

    The number of shares available for trading of a particular stock. ...
  6. Designated Market Maker - DMM

    A market maker that is obligated to maintain fair and orderly ...
comments powered by Disqus
Related Articles
  1. Get Positive Earnings In The Negative-Sum ...
    Active Trading

    Get Positive Earnings In The Negative-Sum ...

  2. Evaluating The Board Of Directors
    Insurance

    Evaluating The Board Of Directors

  3. Advocacy Group Seeks To Change Name ...
    Economics

    Advocacy Group Seeks To Change Name ...

  4. 4 History-Making Wall Street Crooks
    Personal Finance

    4 History-Making Wall Street Crooks

  5. A Checklist For Successful Medical Technology ...
    Insurance

    A Checklist For Successful Medical Technology ...

Trading Center