The New York Stock Exchange is the world's largest stock exchange. It is a collection of foreign and domestic securities, and organizes securities markets into one location, thus helping direct money from investors into various areas or the market. Unlike other exchanges, trades within the NYSE occur in a physical place, known as an auction market.
The DJIA is a stock market index, and usually monitors the top 30 NYSE stocks. By doing so, the DJIA helps indicate the performance of the American economy's industrial sector and is therefore closely monitored.
NASDAQ , unlike the NYSE, is a dealer's market, located on a telecommunications network. It both facilitates the trade of stocks and provides quotes for stock prices. Generally, NASDAQ is recognized as a high-tech market attracting, almost exclusively, firms dealing in electronics or the internet. Due to its relationship with the tech sector, NASDAQ is accordingly volatile.
While there are critics of all three institutions, I believe that, on balance, the NYSE, DJIA AND NASDAQ play a positive role in our economy. By helping keep investors informed and channeling money from investors into difference areas of the market respectively, they help fuel economic growth.
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