In the world of finance, why is there more than one stock market in our country? i.e. why do we have the NYSE, Dow Jones, NASDAQ, and all those others? It seems to me that our economy would be more stable if we all traded through say the NYSE. Then we get accurate readings on how well the stocks are doing. And one other question: What is the difference between those three companies…IF there is any? Do companies get to choose who they trade with?
And if stocks are from the company’s profit, then how does the company make profit? I just want some clarity on how the stock market really works. Thank you!
Good questions, well the NASDAQ and NYSE are stock exchanges, the DOW jones is really just a basket of stocks, it’s not a market itself.
There are thousands of stocks, stock options and commodities in the US and companies list on the exchanges that are more suitable for them, different exchanges have different listing requirements.
There are actually a lot more exchanges in the US that are usually not talked about.
While I can’t explain how the stock market works in detail I would recommend your local book store – "Stocks for dummies" or something along those lines, you’ll gain a great deal of insight on how the financial markets work.
Stocks wouldnt’ be more stable if they were all on one exchange, because a stock price’s stability comes from many different factors.
All the best of luck to you!
February 23rd, 2010 at 6:36 am
Good questions, well the NASDAQ and NYSE are stock exchanges, the DOW jones is really just a basket of stocks, it’s not a market itself.
There are thousands of stocks, stock options and commodities in the US and companies list on the exchanges that are more suitable for them, different exchanges have different listing requirements.
There are actually a lot more exchanges in the US that are usually not talked about.
While I can’t explain how the stock market works in detail I would recommend your local book store – "Stocks for dummies" or something along those lines, you’ll gain a great deal of insight on how the financial markets work.
Stocks wouldnt’ be more stable if they were all on one exchange, because a stock price’s stability comes from many different factors.
All the best of luck to you!
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