The two biggest stock exchanges in the world,
in terms of total market capitalization value
of the shares listed, are the New York Stock Exchange
(NYSE) and the NASDAQ.
But which of these two stock exchanges
has the highest number of "mega caps"?
Take your guess and find out
in this Finance Storyteller video.
Historically, the NYSE has always had the largest
total market capitalization of companies listed,
while the NASDAQ allows a far larger number of
companies to be listed, particularly
those that may be too small to meet
the requirements of the NYSE.
The NASDAQ also has far lower listing fees
than the NYSE.
What are "mega cap" companies?
Well, these are the Big Dogs!
A "mega cap" is a company with a market capitalization
exceeding $100 billion, some would even say
exceeding $200 billion.
Let's take a look at a subset of the top 25 companies
in the world in terms of market capitalization,
in the middle of May 2017.
15 out of these 25 companies have their primary listing
in the US, so on either the NYSE or NASDAQ.
Let's see what you think!
How many of these 15 mega-"mega cap" companies
are listed on the NYSE versus NASDAQ respectively?
A hint: the NASDAQ has become a major exchange
for tech firms, many of whom are too small
in their start-up stages to be listed on the NYSE.
Is the correct answer: A 5 NYSE and 10 NASDAQ,
B 7 NYSE and 8 NASDAQ, C 10 and 5, or D 12 and 3.
Please vote using the YouTube card
that is now being displayed.
Here is the overview, NYSE listed companies on the left,
NASDAQ listed companies on the right.
Per mid-May 2017, out of the top 15, the top 5 is:
Apple with a market cap of $803 billion,
on the NASDAQ.
Alphabet (the corporate name for Google)
with a market cap of $653 billion, on the NASDAQ.
Microsoft, $533 billion, on the NASDAQ.
Amazon.com, $455 billion, on the NASDAQ.
Facebook, $436 billion, on the NASDAQ.
So the whole top 5 of companies with the largest
market capitalizations ranging from $436 billion
for Facebook to $803 billion for Apple,
is on the NASDAQ!
The next 5 have market capitalizations in the range of
$300 billion to $400 billion:
Berkshire Hathaway on the New York Stock Exchange,
Exxon Mobil on the New York Stock Exchange,
Johnson & Johnson on the New York Stock Exchange, JP Morgan Chase on the New York Stock Exchange,
and Alibaba on the New York Stock Exchange.
I know Alibaba is a Chinese company, but they did a
huge IPO in 2014 in the US, so I think
it is valid to have them be part of the
NYSE versus NASDAQ comparison.
The last 5, with market capitalizations of $230 billion to
$275 billion, are also on the New York Stock Exchange:
Wells Fargo, General Electric,
Bank of America, AT&T, and Walmart.
In total: 10 of the "mega cap" companies on the NYSE,
and 5 on the NASDAQ.
While the NASDAQ is home to the top 5 listed stocks
in the US, the NYSE also has a solid
line up with the next 10 largest companies.
At around $2.9 trillion dollars market capitalization
for the top 5 on the NASDAQ, and around the
same $2.9 trillion dollars for the next 10
on the New York Stock Exchange, these are
mindboggling valuations!
I hope you enjoyed this short video on the
NYSE versus NASDAQ listing of
large market cap companies.
I have many more videos available, that can help you
in doing your analysis of
financial statements before investing.
On this end screen, there are a few suggestions
of videos you can watch next.
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