In the struggle between NYSE and NASDAQ for tech listings, everything is a prelude to one company:Facebook. Groupon and Zynga, both choosing NASDAQ, are doubtless important, as were LinkedIn andPandora, which chose NYSE. At the end of the day, however, the choice made by Facebook will define the leader in the tech space.
Back in the late 1990s, NASDAQ was the leader in tech, a situation I remember from my own experiences back then. Nonetheless, NYSE has come on strong in recent years, edging into more than 50 per cent of the tech market earlier this year, according to FT. The recent surge by NASDAQ, however, is too significant to be ignored.
Both exchanges are offering a wide array of free services, but for some, price really is the determinant. Angie’s List, for example, isn’t large enough to trade on NYSE, which probably means the $99,500 (at most) listing fee for NASDAQ is more palatable than the $500,000 that listing on NYSE can cost. While there can be benefits to the latter, for some smaller companies, it just isn’t an option.