US Corporate Law 20 Episodes (17)

Nasdaq and NYSE listing comparison|Ring the bell! Chinese companies go public in the U.S.

Nasdaq and NYSE listing comparison|Ring the bell! Chinese companies listing in the U.S. | What standards do U.S. companies need to meet? Why choose US listing? Instead of Shenzhen Stock Exchange, Shanghai Stock Exchange, Hong Kong Stock Exchange

In the first half of 2020, 16 Chinese companies went public in the United States, including Litchi, Danke Apartment, Tianjing Bio, Anpac, Huize, Zhongchao Medical, Smith Barney English, WIMI, Huaxia Boya, Kingsoft Cloud, Da Da, UCloudlink, Burning Rock Medicine, Genetron Health, Zhaoyan Network, Yibang Communication. Fifteen of them are listed on the Nasdaq, and only Eggshell Apartments is listed on the NYSE. So in this issue we are like talking about the difference between the Nasdaq and the NYSE.

1. Different geographic locations

Nasdaq and the New York Stock Exchange are actually very close, both on the island of Manhattan in New York. Not far away, get off at Times Square Station of Metro Line 3 for Nasdaq, and get off at Wall Street Station of Metro Line 3 for the New York Stock Exchange. There are only 6 stops in the middle, and it takes 18 minutes to arrive. But the difference between the two is:

Nasdaq in Times Square, 165 Broadway, New York.

The New York Stock Exchange is on Wall Street, at 11 Wall Street.

2. The environment in the venue is different

The NYSE is more like the exchanges we see in movies, while the Nasdaq is full of big screens, much like a TV studio.

3. The stage design is different

The bell ringing platform of the New York Stock Exchange is actually a small indoor balcony. The roof of the New York Stock Exchange is very high. Standing on this small balcony, you can see the mountains and small mountains. Good at the beginning. And Nasdaq, as I said just now, is like a radio studio. The bell ringing platform is also a big speech platform. It is not a problem for 30 or 50 people to stand on it. Can't stop.

On the left is Sogou's bell on the New York Stock Exchange, and on the right is Bilibili's bell on Nasdaq.

4. Different ways of ringing the bell

We often say that a certain company

"Go to the Nasdaq and ring the bell!"

"Go to the New York Stock Exchange and ring the bell!"

In fact, both places

No! Have! bell!

The New York Stock Exchange also has a small hammer like a judge used to pretend to knock it. In fact, the bell is also electronically controlled, and Nasdaq does not even have a hammer. There is only a button on the screen, or a touch screen, press it. .

So shabby...

To be honest, among the stock exchanges we often hear about, only the Shenzhen Stock Exchange does have a big bell, the Shanghai Stock Exchange is beating a small gong, and the Hong Kong Stock Exchange is beating a big gong.

5. People react differently when the bell rings

When the Nasdaq bell rings, countless fireworks will fall from the sky (actually scraps of paper, it is said that the color can be chosen), and when the NYSE rings the bell, nothing will appear, so everyone There is nothing to do but keep clapping and clapping for a few minutes.

On the left, people from Alibaba in the New York Stock Exchange applauded, and on the right, people from iQiyi cheered.

6. The framing for taking pictures is different

After ringing the bell, everyone immediately rushed outside to take pictures. On the left of Nasdaq, that is, in Times Square, the background wall is a large arc-shaped screen (it seems that Nasdaq is the most lacking screen) on which will release the companies that ring the bell of the day.

The picture on the left is the day when Weibo rang the bell, and Yao Chen and Wang Leehom came to support the table. On the right is Huya Live, which is listed on the New York Stock Exchange. There is no big screen, but an advertising screen is hung in front of the building.

(1). Historical origins

The New York Stock Exchange was established in 1792, while the Nasdaq was established in 1971, a difference of 200 years.

(2). Listing Criteria

Public companies must have at least 1.25 million shares available for public trading, while companies listed on the NYSE must issue at least 1.1 million shares to at least 400 shareholders.

(3). Fees

Other differences include fees; for companies looking to list on the NYSE, admission can be up to $500,000, while for Nasdaq, admission can range from $50,000 to $75,000, with an annual fee of approx. for $27,000.

(4). Transaction method

The New York Stock Exchange still retains the physical trading floor, which often sees crowds. But Nasdaq is an entirely electronic exchange. Because of this, due to the impact of the epidemic in 2020, it is difficult for the physical trading of the New York Stock Exchange to start, resulting in the trading scale of Nasdaq surpassing that of the New York Stock Exchange.

(5). Scale

In terms of the total market value of listed companies, the New York Stock Exchange is the largest. But in terms of the number of listed companies, Nasdaq is more.

(6). Industry

Most of the NYSE are large-scale, established companies, Fortune 500. Most of the Nasdaq is a growing emerging technology creation companies.

20 lectures on American company law, focusing on the necessary legal knowledge for startup companies. Thanks for watching, see you next time.