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NYSE-Euronext and the NASDAQ:

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PART A

You have been asked to write a report for a group of new stock brokers about the NYSE-Euronext and the NASDAQ.

Research both the NYSE Homepage, and the NASDAQ Homepage, and tell how the two exchanges operate. Make sure to address the following three questions:

â?¢ How are NYSE and NASDAQ similar, if at all?
â?¢ How are the two exchanges different from one another, if at all?
â?¢ What is The Public Company Accounting and Investor Protection Act of 2002? Describe the law in your own words.

PART B

â?¢ Using Web resources, research the three different types of business organizations. Then answer the following questions.

â?¢ What are the three forms of a business organization?
â?¢ What are the advantages and disadvantages of each form?
â?¢ For a corporation, what is the overall goal of the financial manager?
â?¢ Do you agree with this goal? Why or Why not?

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â?¢ How are NYSE and NASDAQ similar, if at all?

The NYSE and the NASDAQ are similar in several ways. Both these exchanges enable trading in stocks and shares. In addition, both the NYSE and NASDAQ are regulated by the Securities and Exchange Commission. Both these exchanges help raise capital for businesses. They provide liquidity for the stocks of the companies traded on the exchange and this encourages investors from investing in those countries. In addition, the NASDAQ and the NYSE enable investors to select and choose the securities they want to invest money in. Finally, both NYSE and NASDAQ enable the investors to sell off their stocks. Both the NASDAQ and NYSE are similar because of the basic reason that both are stock exchanges that mobilize savings for investment in the USA. By providing capital to businesses, they encourage growth in the economy.

â?¢ How are the two exchanges different from one another, if at all?

The NYSE and the NASDAQ are different from one another in several ways. First, the NYSE does all its trading in a physical place which is the trading room in the NYSE premises. On the other hand the NASDAQ does all its trading electronically. So, the NYSE differs from the NASDAQ by way of the physical location of the stock exchange. The location of NASDAQ trades is on a telecommunications network. Another difference is that trading on NASDAQ is done through a broker or a dealer. In other words trading on the NASDAQ is indirect. On the other hand the trading on the NYSE is direct and the auction method is used where the highest bidding price is matched with the lowest asking price. Further, the NASDAQ lists more of hi-tech stocks or computer, electronics, and network stocks. These stocks are believed to be more growth oriented and are more unpredictable. On the other hand the NYSE lists traditional stocks that are more stable and well ...

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