Question

Would you expect a portfolio that consisted of the NYSE stocks to be more or less risky than a portfolio of NASDAQ stocks?

Answer 1

Portfolio which is consisting of NYSE stocks will be more risky than portfolio which are consisting of Nasdaq stocks.

NYSE stocks are combined of all those traditional names like general electrics and Coca-Cola along with Wells Fargo which are mostly traditional companies, and they have entered into their mature stages and some are also into their decline stages, so these companies are mostly related with representation of United States economy in earlier 2000, but Nasdaq stocks are consistent of all those companies which are fast growing and still acquiring a lot of market share and those companies are leaders in their particular markets.

To name a few, NYSE stocks will be like Coca-Cola, Wells Fargo, general electrics where as Nasdaq stocks will be comprised of Apple, Amazon, Tesla , and other stocks which are fast growing stocks and they have the capability of acquiring more of the market shares in the coming years.

The probability of growth and capital appreciation is lesser in investment in stocks listed on NYSE exchange as they are traditional companies and possibility of growth is lower, Whereas probability of growth of Nasdaq stocks are higher .

Liquidity is lower in stocks on NYSE exchange whereas liquidity is higher on the stocks which are listed on the Nasdaq stock exchange, the realisation are also quicker.

So it can be overall concluded that, the stocks listed on NYSE areare more risky than stocks which are listed on the stock exchange.