The Nasdaq and the New York Stock Exchange (NYSE) are the two largest stock exchanges in the United States, and both let investors buy and sell shares of public companies.
Their differences lie between how they operate, their requirements for listing, and the types of companies that list on each exchange.
The Two Trading Systems
The NYSE's Auction Floor
The history of the NYSE goes back to 1792 when 24 stockbrokers signed what was known as the Buttonwood Agreement under a tree on Wall Street in Manhattan. The agreement set trading rules and commissions, and laid the foundation for the oldest stock exchange in the U.S.
The NYSE still operates a physical trading floor at 11 Wall Street. There, designated market makers oversee the buying and selling of specific stocks and are responsible for keeping trading orderly.
At the market's open and close, NYSE-listed stock prices are set through auctions that bring buy and sell orders together to determine a price. During the rest of the trading day, NYSE stocks generally trade electronically. The exchange also incorporates floor-based activity and human oversight.
More than 2,300 companies trade on the NYSE.
The Nasdaq's Electronic Network
The Nasdaq launched in 1971 as the world's first electronic stock market. It’s also headquartered in New York and was created to let trades happen through computers rather than on a physical trading floor.
Where the NYSE is an auction market, the Nasdaq is a dealer market. Instead of one designated market maker per stock, multiple competing dealers post buy and sell prices electronically. When a buyer’s and seller’s prices match, a trade executes.
More than 3,500 companies are listed on the Nasdaq.
Which Companies List on Each Exchange?
A general perception is that older, more established names, such as Walmart, ExxonMobil, and Coca-Cola trade on the NYSE, while the Nasdaq is home to smaller, new technology companies.
That distinction has blurred now that tech giants such as Apple, Nvidia and Microsoft, which are all listed on the Nasdaq, are among the world’s most valuable companies.
SpaceX's choice of the Nasdaq for its record-breaking market debut fits the new paradigm. The aerospace company reached a market capitalization of roughly $1.77 trillion on its first day as a publicly traded stock.
How Companies Choose Between the Two
Both exchanges have similar requirements for financial reporting, boards of directors, codes of conduct and shareholder protection.
However, the NYSE may have stricter standards for requiring a company to show a profit. That’s why younger companies that have yet to make money opt to list on the Nasdaq.
Prestige vs. modernization is another factor. For some companies, the NYSE’s history and brand give it added weight, but others prefer the Nasdaq’s reputation for innovative companies.
Companies can also switch exchanges. In 2017, PepsiCo moved from the NYSE to the Nasdaq, citing cost savings. In 2026, Fifth Third Bancorp made the move from the Nasdaq to the NYSE as it looks to grow.
Does It Matter Which Exchange You Buy From?
The exchange a stock trades on has almost no effect on how an everyday investor actually buys it.
Whether Apple trades on the Nasdaq or Walmart trades on the NYSE, you place the order the same way, through the same brokerage app.
Still, knowing the difference between the two exchanges can remove some of the mystery of investing. Then you can focus on the fundamental research that goes into building a smart portfolio.
