Multiple Choice QuestionThe NYSE and the NASDAQ are ______.Multiple choice question.investment bankstypes of bondsstock marketsmutual funds
Question
Multiple Choice Question
The NYSE and the NASDAQ are ______.
- investment banks
- types of bonds
- stock markets
- mutual funds
Solution
The NYSE (New York Stock Exchange) and NASDAQ (National Association of Securities Dealers Automated Quotations) are both platforms where stocks are traded. Here’s the breakdown:
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Definition:
- The NYSE is a physical exchange where securities are bought and sold through a combination of human brokers and electronic trading.
- NASDAQ is an electronic exchange that facilitates trading of stocks through a network of computers.
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Purpose:
- Both serve the purpose of providing a marketplace for the buying and selling of shares of publicly traded companies.
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Characteristics:
- The NYSE is known for larger, blue-chip companies and has more traditional trading practices.
- NASDAQ is known for a higher proportion of technology stocks and has a more modern trading approach.
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Conclusion:
- Given this context, the correct answer is that the NYSE and the NASDAQ are stock markets.
Final Answer
The NYSE and the NASDAQ are types of stock markets.
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