1. What Is a Stock Exchange? How Does It Differ from OTC Trading? Essential Differences for Beginners

1.1 Core Functions of a Stock Exchange (Simplified Explanation for Beginners)

A stock exchange is not a "stock trading app", but a regulated centralized trading platform that primarily serves three key purposes:

• Facilitating corporate financing: For example, Apple raised funds through its NASDAQ IPO to develop the iPhone;
• Providing a fair environment for investors: Ensuring transparent trading prices and eliminating "under-the-table operations";
• Price discovery: Allowing stock prices to reflect corporate value through supply and demand dynamics (e.g., NVIDIA's market capitalization rose by over 40% in 2024 due to high demand for its AI chips).

In addition to the three major U.S. exchanges, well-known global stock exchanges include the Shanghai Stock Exchange (China), Tokyo Stock Exchange (Japan), and London Stock Exchange (UK), all of which serve as "barometers" of their respective countries' economies.

1.2 Stock Exchange vs. OTC Over-the-Counter Trading: 3 Key Differences (Beginners, Avoid Mistakes!)

Many beginners confuse "exchange trading" with "OTC over-the-counter trading," but the risk profiles of the two are vastly different. Especially in 2024, with an increase in OTC scams, it is crucial to distinguish between them:

Important Note: In 2024, there are many "OTC high-yield scams" claiming "10x returns in 1 month." These are essentially schemes to lure investors into taking over losing positions. Ordinary investors should avoid them at all costs! Prioritize stocks/ETFs traded on formal stock exchanges.

2. What Are the Major U.S. Stock Exchanges? A Comprehensive Analysis of the Three Giants

U.S. stock exchanges are the core of the global capital market. Many beginners search for "what are the U.S. stock exchanges" — while there are 6 formal U.S. stock exchanges, only 3 are relevant to ordinary investors: the New York Stock Exchange (NYSE), NASDAQ, and American Stock Exchange (AMEX). These three are not only the pillars of the U.S. financial market but also barometers of global capital flows and economic trends.

2.1 New York Stock Exchange (NYSE)

• Founded: 1792 (Signing of the Buttonwood Agreement)
• Features: The world's largest stock trading market, focused on traditional industries (energy, finance, industrials).
• Market Capitalization: As of September 2025, it reached $28.8 trillion.
• Representative Companies: Berkshire Hathaway, Exxon Mobil, Walmart

2.2 NASDAQ

• Founded: 1971 (The world's first electronic stock exchange)
• Features: A hub for tech stocks, including giants like Microsoft, Apple, and Amazon.
• Market Capitalization: As of September 2025, it reached $16.2 trillion.
• Representative Companies: Microsoft, Apple, Tesla

2.3 American Stock Exchange (AMEX)

• Current Status: Now renamed NYSE American, focusing on small and medium-sized enterprises (SMEs) and growth-oriented companies.
• Features: Lower listing thresholds, suitable for companies with a market capitalization of over $50 million.
• Representative Companies: Imperial Oil, gold mining companies, satellite communication companies

The three exchanges have distinct positioning: The NYSE is the world's largest traditional exchange, dominated by "blue-chip stocks" (e.g., Berkshire Hathaway led by Warren Buffett); NASDAQ is a fully electronic trading platform focusing on tech stocks and high-growth enterprises (e.g., Apple, Microsoft); NYSE American specializes in serving small and medium-sized growth companies and is also a core platform for ETF issuance (e.g., SPY, which tracks the S&P 500).

Wondering which one fits your investment style? The table below compares their core differences, allowing beginners to quickly make judgments.

3. Understand at a Glance: Core Differences Between the Three Major U.S. Stock Exchanges

4. Global Stock Exchange Market Capitalization Ranking

Many investors want to understand the global market beyond U.S. exchanges. Below is the 2024 global stock exchange market capitalization ranking (Source: World Federation of Exchanges, as of April 2024):

4.1 Top 5 Global Stock Exchanges by Market Cap (2024)

1. New York Stock Exchange (NYSE): $28.8 trillion (U.S.)
2. NASDAQ: $24.5 trillion (U.S.)
3. Tokyo Stock Exchange (TSE): $6.2 trillion (Japan)
4. Shanghai Stock Exchange (SSE): $5.8 trillion (Mainland China)
5. Hong Kong Exchanges and Clearing (HKEX): $4.1 trillion (Hong Kong, China)

4.2 What Are the Well-Known Stock Exchanges in Asia?

• Shanghai Stock Exchange (SSE): Mainland China's largest exchange, divided into A-shares (priced in RMB) and B-shares (settled in USD). Representative companies include Ping An Insurance (601318.SS) and Kweichow Moutai (600519.SS). In 2024, 32 new AI companies were listed on its STAR Market;
• Hong Kong Exchanges and Clearing (HKEX): A core platform for Chinese concept stocks to return. Representative companies include Tencent (0700.HK) and Alibaba Group (9988.HK). In 2024, it allowed "unprofitable tech companies" to list, attracting more AI enterprises;
• Tokyo Stock Exchange (TSE): Japan's largest exchange. Representative companies include Toyota (7203.TYO) and Sony (6758.TYO). Its key index is the Nikkei 225 (N225), which attracted foreign capital inflows in 2024 due to the depreciation of the Japanese yen.

4.3 What Are the Well-Known Stock Exchanges in Europe?

• London Stock Exchange (LSE): Europe's largest exchange. Representative companies include HSBC Holdings (HSBA.L) and Shell (SHEL.L). Its FTSE 100 Index rose by 12% in 2024;
• Euronext: Covers cities such as Amsterdam, Paris, and Milan. Representative companies include L'Oréal (LOR.PA) and Ferrari (RACE.MI). The number of listed new energy companies increased by 40% in 2024;
• Frankfurt Stock Exchange (FSE): Germany's largest exchange. Representative companies include Volkswagen (VOW3.DE) and Adidas (ADS.DE). Its DAX 40 Index rose by 18% in 2024 due to industrial recovery.

5. How Can Beginners Trade Stocks on U.S. Exchanges? 3-Step Account Opening + Trading Hours + Risk Tips

Many Chinese investors want to trade on U.S. exchanges (e.g., buying Walmart on the NYSE or Apple on NASDAQ). The process is actually simple, with three core steps:

5.1 3 Steps for Beginners to Trade Stocks on U.S. Exchanges

• Choose a licensed account-opening platform: Avoid "unlicensed illegal platforms". Prioritize the following three types (verify qualifications on the SEC official website):
  • Interactive Brokers (IBKR): A well-established global platform supporting over 150 exchanges (including the three major U.S. exchanges) with low commissions ($0.005 per share), suitable for experienced investors;
  • Futu Securities: User-friendly Chinese interface with "U.S. stock beginner courses," supporting full-category trading on NYSE/NASDAQ/NYSE American. New users get 180 days of free Level 2 market data;
  • Tiger Brokers: Similar to Futu, with a "simulated trading" function for beginners to practice before real trading. In 2024, it added an "ETF dollar-cost averaging plan."
• Submit identity verification (completable in 10 minutes):
  • Required documents: Clear photos of both sides of your ID card, domestic savings card (e.g., Industrial and Commercial Bank of China, Agricultural Bank of China);
  • Process: Log in to the platform → Select "U.S. Stock Account Opening" → Fill in name/phone number/email → Upload ID card → Bind bank card → Wait for review (usually 1-2 business days).
• Fund the account and start trading (minimum $100 to start):
  • Funding: Convert RMB to USD via "foreign exchange remittance" (individuals have an annual quota of $50,000; operable via bank apps). Funds arrive in 1-3 business days;
  • Trading: Search for stock tickers (e.g., Apple AAPL, ETF-SPY) → Enter "purchase quantity" → Choose "market order" (buy at current price) or "limit order" (buy at a specified price) → Confirm execution.

5.2 U.S. Exchange Trading Hours

U.S. Exchange Holidays: January 1 (New Year's Day), April 12 (Good Friday), November 28 (Thanksgiving Day), December 25 (Christmas Day). No trading is available on holiday.

5.3 3 Key Investment Risks Beginners Must Know

• Exchange Rate Risk: U.S. stocks are priced in USD; fluctuations in the RMB-USD exchange rate affect returns. For example, if you buy $1,000 worth of stocks when the exchange rate is 7.0 RMB/USD and sell when it drops to 6.8 RMB/USD, you will lose 200 RMB even if the stock price remains unchanged. Long-term investment (1 year or more) is recommended to reduce exchange rate volatility impacts.
• Leverage Risk: Some platforms offer "margin trading" (leveraged trading). For example, with 2x leverage, you can buy $10,000 worth of stocks with only $5,000, but losses will also double. Beginners should avoid leverage entirely!
• Tax Risk: Chinese investors are required to pay "capital gains tax" (30% of profits) on U.S. stock investments. For example, if you earn $1,000, you need to pay $300 in taxes. Some platforms (e.g., IBKR) can assist with tax filing; do not miss filings (it may affect future account opening).

6. Frequently Asked Questions (FAQ): Addressing 90% of Investors' Concerns

Q1: Can Chinese investors directly trade stocks on the NYSE/NASDAQ? Is U.S. citizenship required?

A: No U.S. citizenship is required! Chinese investors can open an account through licensed cross-border brokers (e.g., Futu, IBKR) with just an ID card and domestic savings card. Account approval takes 1-2 business days, and the minimum investment to start is $100.

Q2: Which is more suitable for beginners in 2024: NYSE or NASDAQ?

A: Prioritize the NYSE! Amid high global economic uncertainty in 2024, NYSE blue-chip stocks (e.g., Walmart, JPMorgan Chase) have strong resilience, making them ideal for beginners to practice. If you want to invest in AI trends, you can allocate a small portion to NASDAQ ETFs (e.g., QQQ) instead of single stocks.

Q3: How to view real-time market data for U.S. exchange stocks? Is it paid?

A: Market data is divided into "Level 1" and "Level 2":

• Level 1 (Basic Market Data): Free, showing current bid and ask prices, suitable for beginners (Futu and Tiger Brokers offer free Level 1 data for new users);
• Level 2 (Depth Market Data): Paid (approximately $10-20/month), showing all order book levels, suitable for high-frequency traders.

Q4: Which industries are worth focusing on for U.S. exchange investments in 2024?

A: Recommendations by exchange; beginners should avoid random investments:

• NYSE: Energy (Exxon Mobil XOM, benefiting from rising oil prices), Consumer (Walmart WMT, resilient during economic downturns), Healthcare (UnitedHealth Group UNH, stable demand);
• NASDAQ: AI (NVIDIA NVDA, Microsoft MSFT), Cloud Computing (Amazon AMZN, Google GOOG), New Energy (Tesla TSLA, fast-growing energy storage business).

Q5: What happens if a U.S. exchange stock is delisted? How can beginners avoid delisting risks?

A: If a stock is delisted, it may be moved to the OTC market (extremely high risk) or liquidated (principal may be lost). Ways to avoid risks:

• Avoid stocks with "prices < $1" (NYSE/NASDAQ rules state that stocks with prices below $1 for 30 consecutive days may be delisted);
• Avoid companies with "3 consecutive years of losses and market cap < $50 million." Prioritize leading companies with stable profits (e.g., Apple, Microsoft).

Conclusion

This article comprehensively introduces the core differences between the three major U.S. stock exchanges (NYSE, NASDAQ, AMEX), providing in-depth analysis of their historical backgrounds, listing standards, and top 10 stocks by market capitalization. Through comparative analysis, investors can gain a clearer understanding of the positioning and characteristics of different exchanges, thereby providing a reference for asset allocation.

If you are interested in Hong Kong and U.S. stock brokerage rankings or trading platform selection, we recommend referring to our special article: 《2025 Hong Kong and U.S. Stock Brokerage Ranking: In-Depth Analysis of Fees, Features, and Liquidity》. This article compares the advantages and disadvantages of mainstream brokers from dimensions such as commission rates, trading tools, and customer service, helping you quickly identify the most suitable trading platform for efficient global market allocation!