Stock exchanges like the New York Stock Exchange (NYSE) and NASDAQ play a central role in the global stock market by providing a structured platform for buying and selling securities. They function as intermediaries, facilitating the interaction between investors and publicly traded companies, and ensuring transparency, liquidity, and efficiency in financial markets.

The NYSE, known for its traditional auction-based system, is the world’s largest stock exchange by market capitalization. It lists well-established, blue-chip companies and operates as a centralized marketplace, offering stability and high trading volumes. NASDAQ, on the other hand, is an electronic exchange known for its association with technology-driven and innovative companies. It operates as a decentralized network, enabling quicker and more cost-effective trades.

Both exchanges perform key functions such as listing new companies through Initial Public Offerings (IPOs), enabling firms to raise capital. They also establish rules and regulations to ensure fair trading practices and protect investor interests. Additionally, these exchanges provide continuous price discovery by matching buy and sell orders based on demand and supply.

Their operations are critical for market liquidity, allowing investors to convert assets into cash efficiently. The NYSE and NASDAQ support economic growth, encourage investment, and foster confidence in the global financial system by maintaining robust systems.