This is the second part of my article explaining the basics of NYSE and NASDAQ. While the first one is about the basic structure of NASDAQ and NYSE, this second part is dealing with the way stock is traded there. You can find part one here. WHO TRADES WHERE? AND WHAT ABOUT DOW-JONES? The New York Stock Exchange (NYSE) Each publicly traded company may only allow its shares to be traded on one stock exchange. When a company initially begins offering stock to the public, it selects a stock exchange on which to trade. Occasionally, a company will move from one stock exchange to another. One thing that we can’t quantify but must acknowledge is the way that the companies on each of these exchanges are generally perceived by investors. The Nasdaq is typically known as a high-tech market, attracting many of the firms dealing with the internet or electronics. Accordingly, the stocks on this exchange are considered to be more volatile and growth oriented. On the other hand, the companies on NYSE are perceived to be more well established. Its listings include many of the blue chip firms and industrials that were around before our parents, and its stocks are considered to be more stable and established. While the NYSE has the well-known Dow Jones Industrial Average as its primary index, the NASDAQ offers the NASDAQ 100 as its primary index. This consists of 100 of the largest companies in market value that trade on the NASDAQ. Companies in the NASDAQ 100 include companies from a variety of market sectors, other than financial service companies, which are included in their own index. Each year, companies can be added and removed from the NASDAQ 100, depending on their ranking in market value. An index is a collection of stocks, ranging from a few dozen companies to several thousand, that are combined to deliver a snapshot of the performance of the whole market. HOW TO FIND OUT FAST WHETHER A COMPANY IS TRADED ON NYSE OR ON NASDAQ When viewing the performance of stocks on a stock ticker, you’ll see stocks traded on the NASDAQ using a four-letter abbreviation, with only a few exceptions. Stocks traded on the NYSE use a three-, two-, or one-letter abbreviation. When viewing stock performances on a financial news TV channel or in a newspaper, you’ll see NASDAQ and NYSE stocks listed side by side. Nasdaq Composite 1994–2004 (Wikipedia) The shares of these exchanges, like those of any public company, can be bought and sold by investors on NASDAQ, NYSE or another exchange. As publicly traded companies, the Nasdaq and the NYSE must follow the standard filing requirements set out by the Securities and Exchange Commission. Now that the NYSE has become a publicly traded corporation, the differences between these two exchanges are starting to decrease, but the remaining differences should not affect how they function as marketplaces for equity traders and investors. This ends the two-part article about the basics of NASDAQ and NYSE. Hopefully I c [...]
When you are starting out trading stocks you there is quite a learning curve to master. But one of the most important things to know is what the NYSE and NASDAQ are and how stock is traded there (and by whom). Surprisingly, understandable explanations are few on the net, so I decided to provide one that is designed to be understandable, even if you are not too familiar with financial topics. While I tried to keep it short and and to the point, there are some things that are just important to mention. Therefore I split the article in two parts, the first one dealing with the basic structure of NASDAQ and NYSE, while the second part is more about the way stock is traded on each of them. Now without further ado, let’s get started with part one. THE BASICS Whenever someone talks about the stock market as a place where equities are exchanged between buyers and sellers, the first thing that comes to mind is either the New York Stock Exchange (NYSE) or Nasdaq, and there’s no debate over why. These two exchanges account for the trading of a major portion of equities in North America and worldwide. At the same time, however, the NYSE and Nasdaq are very different in the way they operate and in the types of equities traded therein. Knowing these differences will help you better understand the function of a stock exchange and the mechanics behind the buying and selling of stocks. WHO ARE THEY, ANYWAY? NYSE Advanced Trading Floor Trading at NYSE – The NYSE trades in a continuous auction format, where traders canexecute stock transactions on behalf of investors. They will gather around the appropriate post where a specialist broker, who is employed by an NYSE member firm (that is, he/she is not an employee of the New York Stock Exchange), acts as an auctioneer in an open outcry auction market environment to bring buyers and sellers together and to manage the actual auction. They do on occasion facilitate the trades by committing their own capital and as a matter of course disseminate information to the crowd that helps to bring buyers and sellers together. The NASDAQ is an American stock exchange based in New York City. NASDAQ, whichwas originally an acronym for National Association of Securities Dealers Automated Quotations, is the second-largest stock exchange in the United States, in terms of the value of its securities, trailing only the New York Stock Exchange (NYSE). Many of the world’s largest technology companies appear on the NASDAQ, including Amazon, Apple, Cisco, eBay, Google, Intel, and Samsung. DIFFERENCES BETWEEN THE TWO NASDAQ at Times Square The fundamental difference between the NYSE and Nasdaq is in the way securities on the exchanges are transacted between buyers and sellers. The Nasdaq is a dealer’s market, wherein market participants are not buying from and selling to one another directly but through a dealer, who, in the case of the Nasdaq, is a market maker. The NYSE is an auction mark [...]
In the following couple of months Samsung is going to open “Samsung Experience Shops” in over 1400 Best Buy stores ( NYSE: BBY ). The value of the best Buy stock raised 16% after this announcement. A required step, you might say, with the iPhone exceeding in 50% market share in the United States within the previous year and estimates reflecting this fact. Soon the initial set off the Samsung experience shops will open and it’s going to be around 460 ft.² mostly in the entry area of the Best Buy shops. There will also be “Samsung Experience Consultants” assisting the customer. The whole concept reminds not just a bit of Apple stores. This is very good news for potential investors about to buy apple or samsung shares and wondering how they will perform in the near future. For both Samsung and Best Buy, this maneuver seems to be an obvious win. Analysts stated, that the stock of Best Buy has really moved ahead of the fundamentals of the corporation. Regarding the whole mobile device market, Samsung has made great improvements and kept getting closer to catching up with Apple ( NASDAQ: AAPL ) during the past couple of years. But Apple’s strong position in the US market did not make that easy. Their formidable retail profile (around 250 Apple stores in the US alone) has always been a major obstacle for Samsung. We have yet to see if the Samsung experience shops will be capable of delivering the same type of expertise people are used getting from Apple. But the enhanced Samsung US retail store profile will surely break some of Apple’s predominance in the US, which is based on their massive retail store presence to a great extent.
Why an investment in health and relationships, aside from NYSE and NASDAQ, could be one of the best you’ve ever made
You may be wondering about this headline appearing within an analyst blog. Well, let’s just say, some recent changes in my personal life have caused me to “think different”, as Apple – CEO Steve Jobs might have said. Now, don’t get me wrong, im not up to give you the usual moral lecture against financial topics that is so fashionable right now. We all have had enough of that. Instead ,buying the best stock and knowing what’s going on in terms of NYSE and NASDAQ are still among the most important things to me. They are just not THE ONLY important things for me any more. Simply put: To perform well as an analyst and make the best investments you need a good mental and physical health just to be able to cope and keep it up. What’s more: You need good relationships. This is meant two ways: In your working life you need to know the right people and be well connected, otherwise you will have to make your investments and financial decisions based on information you get from newspapers or the internet. Needless to say, you will not be able to react fast enough if you have to rely solely on these sources. You need to have the information LONG BEFORE it gets public. Another thing is, that not every investment one makes might perform as well as one would like it to. We all know that shares that seemed very promising can lose value quicker than one thought it possible. These things can be devastating. But it can happen now and then, and when it does, you need strong and reliable personal relationships to back you up and get you back on track. If this is nothing new to you and you already got it down – great, be sure to keep it that way. But if not, I urge you to put some attention on health, fitness and relationships or you’re bound to get in trouble as soon as something messy happens. That being said, I am about to do something unusual here: I will expand this blog with a few more categories, which will be health, mental health, self development and relationships. While financial matters will still be an important part, I will put some emphasis on those health and relationship topics as well. Uncommon? Sure, but that is exactly what it is all about. Let’s say you did everything right, buy the best stock, your investments thrive, you got the money you wanted. Now all you need is a great life to enjoy – because this is what we do it for, right? And this is exactly what you are going to need these things for – To enjoy your success!
The online travel market may further on, in contrast to online tickets, be the market having the least competition but also the quickest expansion rate. Booking holidays over the web has sustaining annual expansions. The quantity of bookings through online travel agencies in the EU improved by nearly 20% within the last two years. As an example, for more pricey journeys, buyers in Germany kept on favoring travel agencies, while using online booking for trips with lower price tags, whereas in the UK a much greater share of buyers arranged their vacations rather online, over 50% of them completely refraining from classic vacation agencies. This has caused the off-line sales revenue to diminish, while online revenue in this market has significantly increased. In 2011 the revenue produced by online travel bookings expanded more than the entire B2C e-commerce earnings in France alone. Another huge tendency is the appearance of multi-device research by buyers. According to a VFM Leonardo whitepaper the use of mobile devices has greatly increased, while many businesses have managed to effectively hook up with Internet shoppers, raising market shares by investing intensively. Using mobile apps for vacation research and reservations with touchscreen phones and tablets is spotlighted by many web firms in recent time. The significant expansion of the Web travel business is also pushed by the strong increase of worldwide traveling. This trend is expected to continue for years to come. Priceline.com (Nasdaq: PCLN) reacts by making use of the available expansion options in Asian countries plus Latin America. People planning their holidays over the net are willing to pay considerably more and are better informed than ever. In the year 2012, in America alone, they spent a whopping $226 billion dollars online. Based on estimates by Forrester Research a further rise to $327 billion dollars is expected until 2016. Analysts expect the increased ease and comfort using online shopping systems, combined with wider internet store shopping capacities with mobile and tablet systems, to fuel this ongoing increase for many years to come.
Investors are concerned as they don’t see the same hype as iPhone5 building around an iPhone6 which might be launched in the fall of CY13. This has led investors to ask-“What next?” We continue to believe that Apple (NASDAQ:AAPL) will have considerable value going forward also. Apple being the innovative giant it is, we won’t be surprised if it launches yet another chain of products as it has done with introducing the first mac, the first iPod, the first iPhone and the first tablet (Maybe Apple is researching iAppliance in some secret lab!). As we can’t know what is going inside the headquarters of Apple right now, we will be talking about the strategies that could help Apple deliver in the future after the launch of iPhone5. To begin with, we expect that Apple will be providing iPhone 4S, its recently outdated model at a much lower price in the developing markets after the launch of iPhone5. We have seen this in the past as Apple has provided its 3GS 8GB phone at $375 and we expect to see it in the future but at a much lesser price point. We believe that this kind of offering would accelerate Apple’s share gain in the emerging markets and consequently increase investor confidence in the sustainably of Apple’s overall growth. While offering outdated models at lowered price might result in a downside to the ASP’s for Apple, we believe that Apple would ultimately benefit through the volume growth in the price sensitive developing markets such as China. We also believe that a low cost iPhone would provide Apple with an opportunity to fight with low-price smartphone manufacturers like Samsung, Nokia (NASDAQ:NOK) and HTC in the developing markets. With Apple already having a majority stake in US (Around 50%), this move could position Apple to increase its standing in the emerging markets also. Furthermore, we continue to believe that Apple will announce a smaller 7-8? iPad along with the iPhone 5 later this year. We continue to see significant growth implications for Apple with this launch. While we believe that the financial implications for Apple will be minimal as Apple might have to enter at a lower price, the strategic implications far outweigh the financial ones. We believe that the major portion of the tablet market that Apple doesn’t own is currently made up of 7? tablets. Thus, if Apple can capture 50% of the 7? tablet market, which should be achievable given Apple performance and past track records, the company would further strengthen its utter dominance in the growing tablet sector. We believe that Apple with its entry into the lower price segment is trying to maintain its leadership position in the tablet market and prevent competitors like Google (NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) from increasing their market share. We believe that this move might also increase up-sell opportunities for Apple as Apple products have shown higher level of stickiness with users with intent to repurchase in the past. While there are rumours in the [...]