The exchange of securities between buyers and sellers is the primary distinction between the NYSE and the Nasdaq. The auction technique determines NYSE stock prices at market openings and closures. On the NYSE trading floor, designated market makers are the listed company’s human point of contact. Market makers provide two-sided and price quotations for a security for which they create a market. Market makers at the Nasdaq keep stock inventories to buy and sell from their own accounts by dealing with private clients and other dealers.
The number and size of listings, the execution of deals, and investor perception all differ significantly between the Nasdaq and NYSE. Based on company sizes, the Nasdaq has more listings than the NYSE. Numerous large “blue chip” corporations with a long history can be found on the NYSE. The main distinction is that the Nasdaq is a dealer market whereas the NYSE is an auction market. In the former, the lowest asking price for a stock is matched with the highest bid. In the latter, electronic traders facilitate instantaneous buying and selling. The NYSE is regarded as the stock market for “tried and true” assets, which have long served as pillars of the financial industry and will do so in the future. On the other side, the Nasdaq is seen as a venue for tech stocks that are focused on growth.