The press covered the decision by Facebook to list on Nasdaq rather than the NYSE (NYSE: NYX) as if a real contest existed between the two exchanges. Facebook could not have done otherwise if it wanted to keep its momentum as the premier tech company of its generation.
Most investors consider the NYSE as the home of old-world public corporations. The perception is true. The large companies traded on the exchange are dominated by banks, big oil companies, older telecom companies, big pharma, the country’s largest retailers, car manufacturers and the ancient conglomerate General Electric (NYSE: GE). Almost all of these firms or their predecessors are decades old. Few have any rapid sales growth prospects. A Facebook listing would be entirely out of place.
Some of the giants listed on Nasdaq are no longer growth stocks, but recently were. These include Microsoft (NASDAQ: MSFT) and Cisco Systems…
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