The New York Stock Exchange

The New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation (NASDAQ) are both stock trading markets and offer similar services to investors. These two markets both offer a place to exchange investments, equities, and other stock between buyers, usually individuals or companies looking for good investment opportunities, and the sellers, usually corporate organizations looking to generate extra capital for their business operations. Both of these organizations are publicly traded companies and they generate huge revenues and turnovers on a daily basis.

Therefore it can be said that these two organizations are fundamentally the same, however they are also different in as many ways as they are similar. These two exchanges are however fundamentally different in that the range of organizations who deal with each one differ. The NASDAQ is a primarily technology based market, with some internet firms and other electronics companies trading their securities. On the NYSE, large industrial organizations are traded and the way these trades occur is also another difference between these two markets.

The NASDAQ conducts business using a very high technology trading system, compared to the NYSE which still uses traditional trading, done physically on the trading floor by brokers. The NYSE website clarifies this point by claiming that “Though many of our markets operate electronically, we believe nothing can take the place of human judgment and accountability” (NYSE, 2010). This is further demonstrated by the physical locations of both these markets. The NYSE operates from a building on Wall Street in New York however there is no real traditional “home” of the NASDAQ, as it is a purely computerized system.

There are yet more differences in the operating procedure for organizations wanting to be publicly listed on either of these exchanges. The NYSE operates a far stricter set of regulations and requirements that must be met by the company wishing to be listed, compared with the far less strict requirements for potential listings on the NASDAQ. The NASDAQ also differs from the NYSE in the way that the markets are made. There are market specialists on the NYSE floor who only deal in equities based around a specific market, yet on the NASDAQ there are a wide variety of markets on offer in a single place.

The former WorldCom Inc. Chief Executive Bernard Ebbers case has affected WorldCom Inc, and the telecommunications industry as a whole due to the serious nature of the case and the actions taken by him and his board of directors. These actions led to big problems and “WorldCom’s top officials were charged with fraud, the firm filed for bankruptcy in July 2002” (Chambers, 2008, p. 88). WorldCom then collapsed into bankruptcy, amid an accounting scandal that involved Ebbers and his fraudulent accounting practices that he had perpetrated.

He had arranged for corporate accountants to cover up the declining profitability of the company. As well as this he subsequently “pledged his vast holdings of WorldCom stock as collateral for loans to finance the purchase of his personal outside business interests” (Zekany, Braun & Warder, 2004). These actions, along with the situations at other large corporations who were acting fraudulently at the same time, such as Enron have had implications across the whole stock market, forcing the government to introduce legislation to deal with fraud at a corporate level.

Some other consequences of this scandal have affected the employees of these fraudulent companies, who had to lay off most if not all of their staff. This collapse also affected the stock market in other ways, adding to the economic issues that were already becoming obvious, and that the economy is still dealing with today, in a period of sustained recession and negative growth. References NYSE. (2010). Stronger Accountability Means Stronger Markets. Retrieved June 5, 2010, from

NYSE-Euronext: http://www. nyse. com/attachment/viewpoint. htm Chambers, V. (2008). Worldcom Shareholder’s Loss Not Theft. Journal of Accountancy, 206(3), 88. Retrieved June 5, 2010, from Questia database: http://www. questiaschool. com/PM. qst? a=o&d=5028902692 Zekany, K. E. , Braun, L. W. , & Warder, Z. T. (2004). Behind Closed Doors at WorldCom: 2001. Issues in Accounting Education, 19(1), 101+. Retrieved June 5, 2010, from Questia database: http://www. questiaschool. com/PM. qst? a=o&d=5002104933