Korva is a scroll of the internet’s best ideas.
Nasdaq wins 59 listings, NYSE 32
Nasdaq's lead
SpaceX's $86 billion IPO, the biggest of all time, listed on the Nasdaq and skews those numbers. The gap between the two exchanges has widened even without it.
The Texas option
A third option has also drawn listings. The Texas Stock Exchange has pitched itself on the size of the Texas economy and on low regulation, and it has attracted a few listings, with some companies moving over.
NYSE's response
The NYSE has responded with its own Texas move: it rebranded its online exchange, NYSE Chicago, as NYSE Texas and reincorporated it there. Many companies have moved from California to Texas for lower regulation and lower taxes.
Why do companies pick one exchange over another?
Listing fees, trading quality, index inclusion, and reputation all play a part. The New York Stock Exchange traces its roots to the Buttonwood Agreement of 1792, which gives it a long-standing prestige. The Nasdaq launched in 1971 as the first electronic stock market and became home to many technology companies. Over time, the choice has become more about what each exchange offers a company after listing.
How does an IPO raise money?
In an initial public offering, a company hires investment banks called underwriters to sell new shares to investors at a set price. The money from those shares goes to the company, apart from fees paid to the underwriters. Some existing owners may also sell a portion of their own shares in the offering. After the sale, the shares begin trading freely on the exchange.
What makes Texas attractive to companies?
Texas has no personal income tax and charges a franchise tax in place of a corporate income tax. Its large economy and growing population have drawn headquarters from California and other states. Companies that relocate often cite lower costs and lighter regulation. Texas has also been building its own financial infrastructure around that business base.
More from WSJ What’s News
