In the stock market industry, the trade for stocks and stock options are often interchanged and many may be confused between the concepts behind these types of trades. However, what you should know is that these two have very different characteristics from each other, and using them interchangeably can be very lethal if you want to engage in the stock trading game.
In business and finance, a single one share (also referred to as equity share) of stock means a share of ownership in a corporation (company). In the plural, stocks is often used as a synonym for shares especially in the United States, but it is less commonly used that way outside of North America.
Just imagine that you are a shareholder of a company XYZ and are trying to sell your shares in the company to somebody who is interested in buying them. Now if you wanted to look for buyers there a couple of options in the real world you could do that like put up a sale notice or give an advertisement in a local newspaper or go to internet and try to list it for sale at one of the auction places. Just imagine what would happen to world when almost everybody who owns the shares tries to do that, you would practically have a mad rush of advertisements all over the world.
NASDAQ is relatively young but has been giving NYSE a run for its money. NASDAQ operates very differently than the NYSE as it works on a method called the double auction method. In this method the highest bidder competes with all the bidders on a buy and same goes for a sell.
The NASDAQ though we know it as an exchange is not an exchange, and works like an automated mechanism where buyers and sellers can meet. The NYSE works on the system called double auctions where in the highest bidding buyer competes with other buyers and the lowest bidding seller bids against other sellers.NASDAQ though not very old has give tough competition to NYSE.The technology focus has helped NASDAQ some inherent strengths.
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