Difference Between Dow and NASDAQ (With Table)

Stock markets or share markets are the always hyped topic in the market. The regular investments, currencies, buying, selling, issuing of the shares is what mainly involves in the field. There is one such term associated with it, and that is the Stocks Exchange. And NASDAQ is one of the great examples of the Stock Exchange Market along with the New York Stock Exchange (NYSE) and Chicago Board Options Exchange (CBOE) that deals within the daily stock exchange of different companies.

Dow vs NASDAQ

The difference between Dow and NASDAQ is that Dow is a market stock exchange place that allows its users to invest in buying and selling their assets. The marketplace was established in the year 1896 by Charles Dow. Whereas comparatively, on the other hand, the NASDAQ is an electronic marketplace letting its users and investors keep an eye or watch on the everyday stock exchange or the market flow.

Dow is the company that was well-established stock exchange market in the year 1896, and the brilliant mind behind this was Charles Dow. Sometimes it is misguided with a similar company called Dow Jones and Company, a publication for Wall Street Journal. The company has listed over 30 companies underneath itself, which looks after the trading of their stocks in the New York Stock Exchange (NYSE) and NASDAQ.

NASDAQ is an electronic or digital stock exchange that was first introduced and got its establishment in the year 1971. The stock exchange NASDAQ is the abbreviation of the National Association of Securities Dealers Automated Quotations exchange. The exchange comprises more than 3500 companies underneath itself that trade through it.

Comparison Table Between Dow and NASDAQ

Parameters of ComparisonDowNASDAQ
What is it?A marketplace that allows its investors or holders to sell or buy their securitiesA marketplace that allows their investors to know about the flow of the stock market
Comprise of It comprises over 30 major companiesIt comprises more than 3500 stocks that are traded as both index or exchange.
Establishment It came into establishment in the year 1896It came into establishment in the year 1971 and is much newer
Volatility It is lowIt is more
PerformanceBased on the overall companies and not individualityBased on how the stocks in the market are faring

What is Dow?

Dow is a market exchange place where the traders are invited for trading and buying of different stocks in the stock exchange market. The company was founded by the brilliant minds behind them are Charles Dow, Edward T. Jones, and Charles Berkstresser. The three of the person founded the company in the year 1896, and the acronym for the same is Dow Jones Industrial Average (DJIA) which is sometimes often misunderstood with the Dow Jones and Company, the company that publishes the Wall Street Journal.

They have acquired around 30 major companies under it. The list of the company includes many major names like – The American Express Company, Johnson and Johnson, The Pfizer company, the Coco-Cola Company, Nike Incorporation, Microsoft Cooperation, McDonald’s Corporation, The Boeing Company, etc.

The volatility experienced by the companies is quite low because of the acquiring of the blue-chip companies that are less in the number listed under them. It is accessible in three ways that are – Option, Future, ETF (Exchange-traded Fund).

What is NASDAQ?

NASDAQ is one of the marketplaces that came into existence for the users to trade in stocks and market in an electronic digital way. The idea of NASDAQ came into existence in the year 1971, which is quite an early and rational step. This helps the users to trade from wherever and whenever. The company NASDAQ is considered the 2nd most prevalent amid the stock exchange market, while the first is the New York Stock Exchange (NYSE).

The company has listed over more than 3500 companies that trade under NASDAQ. They also allow their users to sell and buy stocks in the market. The acronym NASDAQ stands for the full form National Association of Securities Dealers Automated Quotations exchange. It has three tiers in it that are – Global Select Market (large cap), Global Market (mid-cap), and Capital Market (small cap). The trading time of the company generally lies between 9:30 am to 4:00 pm. 

Main Differences Between Dow and NASDAQ

  1. Dow is a market exchange place that allows its investors and users to buy or sell their securities in the associated companies whereas comparatively, on the other hand, the NASDAQ is the market exchange place that is electronic-based and allows the users or holders to know more about the continuous flow and depression in the stock market.
  2. Dow is a company that comprises over 30 companies under it that trades on the New York Stock Exchange (NYSE) whereas comparatively, on the other hand, NASDAQ is a stock exchange that deals or trades in the stock of over more than 3500 stocks. 
  3. The Dow was establishment in the year 1896 by Charles Dow, whereas comparatively, on the other hand, the NASDAQ was established in the year 1971, and it is a much newer concept.
  4. The volatility faced by the investors in Dow is low because of the limited 30 companies that trade in, whereas comparatively, on the other hand, the volatility faced by the investors in NASDAQ is high because of the greater number of companies that trade in it.
  5. The performance of the Dow company comprises the overall performance of the listed one rather than to be individual whereas comparatively, on the other hand, the NASDAQ performance is based on how the company stocks are faring in the market.

Conclusion

Dow and NASDAQ both may have similarities in them as they both are the stock exchange, but the medium was different for them. Dow trades with the physical method in the stocks and market while comparatively, NASDAQ is the first stock trading marketplace where stock trading can be done digitally and with safer and more secure practice. The establishment of the companies took place in two different decades and are. In 1896 Dow was established by Charles Dow, and along with them were two other minds and are Edward T. Jones and Charles Berkstresser. Comparatively, on the other hand, NASDAQ was established in 1971 and was the first to trade on an electronic base. 

References

  1. https://academic.oup.com/rof/article-abstract/11/2/325/1670456
  2. https://www.sciencedirect.com/science/article/abs/pii/0749597888900350
  3. https://onlinelibrary.wiley.com/doi/abs/10.1002/hec.3062
  4. https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1540-6261.1994.tb00083.x
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