This probably seems simplistic, but I'm new to the investing world and I'm wondering what the distinction between the two is. Wyy is Nasdaq seen as the logical choice for tech companies to go public?
Hi Rei, it used to be that the NASDAQ was a computerized trading platform and the NYSE was primarily human-based. But that distinction no longer matters much now that both trading platforms execute primarily electronically. The main distinction that matters now is that the NYSE has slightly more stringent listing requirements and membership fees. During the tech boom the different in listing requirements was more significant. It was those listing requirements (including profits, share float, etc) that traditionally led tech companies to list on the less stringent NASDAQ. Now that those are quite a lot more similar for the average investor the distinction is essentially meaningless and for the average pre-IPO company the same is becoming truer all the time.