What is the difference between NYSE and Dow Jones?

The Dow Jones is an index, and the NYSE is an exchange, a place where people come to buy and sell. It is referred to as the Dow Jones industrial average. The Dow averages between 30 top blue-chip stocks, which demonstrated how the market is averaging. The NYSE exchange is where all the trades for numerous companies take place.

NYSE stocks possess both floors as well as electronic trading. The Dow Empire has undergone several transformations. The NYSE trades through the hybrid system, which was established after the Archipelago merger. The most liquid stocks get traded, via machines. In contrast, the least liquid stocks are traded on the floor through an open outcry, which is a business term for the method of communication between professionals. What is to be expected is loud shouting and hand signals to transfer concerning buying or to sell orders.

Many people use the Dow and the Nasdaq interchangeably when it comes to aspects of the market. Though both are indexes that investors can use when it is related to the market, they do have differences between them. The Dow is referring to the Dow Jones Industrial Average or DIJA. Nasdaq is an abbreviation referring to the National Association of Securities Dealers Automated Quotations.

Between the two, the Nasdaq is more extensive, for it can be used as an index or an exchange, while the Dow is only an index. This index is for about 30 companies in total. Another difference between the two is how long they have been around. The Dow was established in 1896, while the Nasdaq was established in 1971.