Overview
Learn about the different types of markets and major indices in the US market, and understand what they represent and how they can help you follow market performance.
Types of Markets
Markets | NYSE | NASDAQ |
Trading Model | Hybrid model (electronic + floor trading) | Fully electronic exchange |
Key Features | Blue-chip companies: hosts many of the world's largest and most stable corporations (e.g., Coca-Cola, Johnson & Johnson, Berkshire Hathaway) | Home of tech & innovation: known for listing high-growth and tech-focused companies, including many startups and disruptors; flexible listing requirements — slightly more accessible for emerging businesses compared to the NYSE |
Examples of Listed Companies | Apple (dual-listed), JPMorgan Chase, ExxonMobil, Walmart, Visa | Apple, Microsoft, Amazon, Google (Alphabet), Meta (Facebook), NVIDIA, Tesla |
Focus | Large, established firms | Tech & growth-oriented firms |
OTC market
OTC (Over-the-Counter) Market is a market where certain securities are traded outside major stock exchanges such as NYSE and Nasdaq.
In simple terms
Not all stocks are listed on major exchanges such as NYSE or Nasdaq.
Some securities are traded through a network of broker-dealers rather than on a centralized exchange.
OTC stocks may include companies that are smaller or do not meet the listing requirements of major exchanges.
OTC securities generally have lower liquidity and wider bid-ask spreads compared to securities listed on major exchanges.
They may carry higher risks, so it is important to review the company's information and the security's liquidity before trading.
Market indices
Index | Tracks | # of Companies | Sector Focus | Weighted Method |
S&P 500 | Largest U.S. companies | 500 | Broad-based | Market-cap |
DJIA | 30 large U.S. firms | 30 | Blue-chip | Price-weighted |
NASDAQ Composite | All NASDAQ stocks | 3,000+ | Tech-heavy | Market-cap |
Russell 2000 | Small-cap U.S. firms | 2,000 | Broad/small-cap | Market-cap |