Money & Finance › Stocks & markets › Stocks: owning a slice of a company
Stock exchanges: NYSE and Nasdaq
NYSE 1792; Nasdaq 1971· Institution or agency
Fact, law or dataA rule, statute, definition or measured number.
The New York Stock Exchange and Nasdaq are the main US marketplaces where listed company shares are bought and sold.
See it on the Money & Finance map →How it works
The NYSE traces to the Buttonwood Agreement of May 17, 1792, signed by 24 brokers on Wall Street; it has been owned by Intercontinental Exchange since 2013. Nasdaq opened in February 1971 as the first electronic market and became home to most big tech firms. Exchanges set listing standards, match buy and sell orders, and publish prices, 9:30 a.m. to 4 p.m. Eastern. More than a dozen US exchanges now compete, and about half of share volume trades off-exchange.
Why it matters
Exchanges give stocks liquidity and transparent prices, which lowers companies' cost of raising money and lets investors get in or out within seconds.
Facts, rules and data
Exchanges register with the SEC under the 1934 Securities Exchange Act; every trade prints to a consolidated tape. Trades have settled in one business day (T+1) since May 2024.
Debates and risks
Whether off-exchange trading by wholesalers and dark pools gives ordinary investors fair prices, and whether 24-hour trading helps them, is debated.
Inside this (4)
Connections (10)
▸Stocks: owning a slice of a company trade on Stock exchanges: NYSE and NasdaqFact, law or data
The connection
A company lists its shares on an exchange after meeting its standards for size, shareholders and governance. Investors' orders go through brokers; the exchanges match bids and offers and publish the best prices. Even trades done off-exchange must match or beat those public quotes, so exchanges anchor every stock's price.
When and why
On the NYSE since 1792 and Nasdaq since 1971; regular trading runs 9:30 a.m. to 4 p.m. Eastern, settling one business day later.
How we know
SEC registration of exchanges under the 1934 Act; every trade prints to the consolidated tape, a public record.
Debates and risks
Whether the shift of about half of volume to off-exchange venues weakens public price discovery is debated by regulators and exchanges.
▸Initial public offerings (IPOs) list companies on Stock exchanges: NYSE and NasdaqFact, law or data
The connection
An IPO ends with a listing. The company picks the NYSE or Nasdaq, meets its rules on share price, market value, public float and an independent board and audit committee, and pays listing fees. On day one the exchange runs an opening auction to set the first trade. Exchanges compete hard for big listings.
When and why
Examples: Facebook on Nasdaq in May 2012, whose glitchy debut cost Nasdaq a $10 million SEC fine; Alibaba on the NYSE in September 2014.
How we know
Listing standards are filed with and approved by the SEC; exchange records list every new listing and its first trade.
Debates and risks
Why the number of US-listed companies has roughly halved since the late 1990s, as firms stay private longer with venture and private equity money.
▸Stock exchanges: NYSE and Nasdaq are regulated by Securities and Exchange Commission (SEC)Fact, law or data
The connection
Under the 1934 Act an exchange must register with the SEC, which approves its rules, fees and listing standards. Exchanges are themselves self-regulators that police members and listed companies. SEC rules such as Regulation NMS (2005) bar trading venues from executing orders at prices worse than the best quote displayed on a competing venue.
When and why
Since 1934; today about two dozen registered exchanges, mostly owned by three groups: Intercontinental Exchange (which owns the NYSE), Nasdaq and Cboe.
How we know
Exchange registrations and rule filings on sec.gov; SEC enforcement against exchanges, such as Nasdaq's $10 million penalty over the botched 2012 Facebook IPO.
Debates and risks
With roughly half of US stock trading now off exchanges, in dark pools and at wholesalers, whether market rules still serve small investors well is debated.
▸Black Monday crash (1987) led to circuit breakers on Stock exchanges: NYSE and NasdaqFact, law or data
The connection
Investigators found that stock, futures and options markets had fallen out of sync, with selling cascading between them. In 1988 exchanges adopted circuit breakers, coordinated pauses after big drops. Today a 7% fall in the S&P 500 halts trading for 15 minutes, again at 13%, and a 20% drop closes markets for the day.
When and why
Adopted in October 1988 after the Brady Commission report; first triggered October 27, 1997, and tripped four times in March 2020.
How we know
The Brady Commission's recommendations and the SEC-approved market-wide halt rules, last overhauled in 2012.
Debates and risks
Whether halts calm panic or worsen it, as traders rush to sell before a pause (the 'magnet effect'), is debated.
▸Real estate investment trusts (REITs) mostly trade on Stock exchanges: NYSE and NasdaqFact, law or data
The connection
Most REIT value is in listed companies such as Prologis, American Tower and Equinix, so investors can buy commercial property shares like any stock, with daily prices. Listed prices move ahead of private appraisals: in 2022 listed REITs fell about 25% while private property values lagged. Non-traded REITs, like Blackstone's BREIT, avoid exchanges but limit withdrawals.
When and why
REITs were created by Congress in 1960; listings boomed after the early-1990s real estate bust. About 200 trade on US exchanges.
How we know
Nareit and exchange data on listings and returns; BREIT began enforcing its withdrawal limits in December 2022.
Debates and risks
When listed REIT prices and private appraisals diverge, which is right? Studies suggest listed prices lead private values by months.
▸World stock markets: about $158 trillion, 44% of it in the US are dominated by Stock exchanges: NYSE and NasdaqFact, law or data
The connection
Most of the world's listed value trades on a few big exchanges. The NYSE and Nasdaq list nearly all of the US's roughly $69 trillion, the 44% share. Other large venues include Shanghai, Shenzhen, Japan Exchange Group, Euronext, Hong Kong and India's National Stock Exchange.
When and why
New York: the NYSE traces to the 1792 Buttonwood Agreement; Nasdaq opened in 1971.
How we know
World Federation of Exchanges monthly market-value statistics and SIFMA's Fact Book.
Debates and risks
Whether US dominance, led by a handful of tech giants, lasts, or listings shift toward Asia, is debated.
▸Toronto Stock Exchange (TSX): banks, energy and mining ranks third in North America after Stock exchanges: NYSE and NasdaqFact, law or data
The connection
By listed value the TSX comes after the NYSE and Nasdaq in North America, with Canada about 3% of world stock value. Many large Canadian firms, such as Shopify, the big banks and Canadian Pacific Kansas City, list in both countries, so New York competes with Toronto for trading and new listings.
When and why
Toronto and New York; cross-listing grew from the 1990s.
How we know
World Federation of Exchanges data and TMX and NYSE listing records.
Debates and risks
Whether Canadian growth companies will keep choosing New York's deeper pool of investors.
▸Market makers, high-speed traders and payment for order flow quote prices all day on Stock exchanges: NYSE and NasdaqFact, law or data
The connection
Exchanges pay rebates to firms that post quotes and charge those that take them, so market makers supply most of the displayed prices on the NYSE and Nasdaq. The NYSE also assigns a designated market maker to each stock to keep trading orderly and help run the opening and closing auctions.
When and why
New York and the New Jersey data centers where exchanges' computers sit; firms include Citadel Securities, Virtu and GTS.
How we know
Exchange fee schedules, NYSE rules for designated market makers, and SEC market-structure studies.
Debates and risks
Whether 'maker-taker' rebates distort how brokers route orders; the SEC withdrew a related pricing proposal in June 2025.
▸Dark pools and off-exchange trading (about half of US volume) now handle slightly more trading than Stock exchanges: NYSE and NasdaqFact, law or data
The connection
In 2025 about 50.6% of US share volume traded off-exchange, in dark pools and with wholesalers filling retail orders, against about 49% on the more than a dozen exchanges. Off-exchange venues still price trades off exchange quotes, so lit exchanges do most of the price discovery.
When and why
US stock markets; the off-exchange share first topped half in a month in late 2024 and for a full year in 2025.
How we know
Cboe and Rosenblatt Securities data built from FINRA trade reports.
Debates and risks
Whether exchanges can win back volume, for example with new retail auctions, or regulators will step in.
▸London Stock Exchange (LSEG) and the FTSE 100 competes for listings with Stock exchanges: NYSE and NasdaqFact, law or data
The connection
Companies list where they expect the most investors and the highest valuations. Since 2022, Arm, CRH, Flutter, Ferguson and others chose New York for their main listing, citing deeper investor pools. Britain answered in July 2024 by merging its listing categories and relaxing rules on dual-class shares.
When and why
London and New York, 2022–26; Wise shareholders voted in 2025 to move its main listing to the US.
How we know
Company announcements, LSEG and FCA statements, and IPO league tables.
Debates and risks
Whether London's slide is about rules, valuations or UK pension funds' shift away from British stocks.