How Many US Stock Exchanges Are There?

Stock exchanges provide organized marketplaces where financial instruments are bought and sold. They serve as central hubs for capital formation and investment, enabling companies to raise funds and investors to trade securities. These venues facilitate price discovery and liquidity for efficient trading.

Defining a Stock Exchange

A stock exchange is a formal organization regulated by the Securities and Exchange Commission (SEC) that brings together purchasers and sellers of securities. It operates as a structured marketplace where members can exchange common stocks, bonds, and other financial instruments. Exchanges facilitate transactions, ensure transparent pricing, and maintain an orderly market. They also establish rules for listing companies, which often include requirements for regular financial reporting and minimum capital levels.

These entities ensure fair and efficient trading, helping companies gain visibility and attract investors. By centralizing trading activity, stock exchanges help to create a liquid market where buyers can readily find sellers, and vice versa. This structured environment is distinct from other trading venues that operate with different regulatory frameworks and operational models.

The Primary US Stock Exchanges

In the United States, multiple national securities exchanges trade stocks. As of May 2024, 24 such exchanges are registered with the U.S. Securities and Exchange Commission (SEC). The New York Stock Exchange (NYSE) and Nasdaq are the two primary exchanges. The NYSE, known for its hybrid market blending electronic trading with a physical trading floor, lists many of the world’s largest and oldest companies. Nasdaq pioneered electronic trading and is often associated with technology and growth-oriented companies.

Beyond these two, registered exchanges include several operated by larger groups like Cboe Global Markets, Nasdaq (beyond its primary exchange), and Intercontinental Exchange (ICE), which owns the NYSE. These additional exchanges often specialize in specific types of securities or trading strategies, such as options or derivatives. Examples include various Cboe exchanges (e.g., Cboe BZX Exchange, Cboe Options Exchange), Nasdaq exchanges (e.g., Nasdaq BX, Nasdaq PHLX), and NYSE exchanges (e.g., NYSE Arca, NYSE American). Each registered exchange must comply with federal securities laws and regulations.

Beyond the Main Exchanges: Other Trading Venues

While stock exchanges are central, the U.S. financial market also includes other trading venues not classified as traditional exchanges. Alternative Trading Systems (ATSs) are SEC-regulated electronic systems that match buy and sell orders for securities. Unlike exchanges, ATSs are typically regulated as broker-dealers and do not set rules for subscribers beyond those related to trading on their systems. Some ATSs, particularly those that do not display their orders publicly, are often referred to as “dark pools,” allowing for the execution of large orders with minimal market impact. They provide alternative avenues for accessing market liquidity.

Another category includes Over-The-Counter (OTC) markets, which are decentralized networks where securities are traded directly between parties through broker-dealers, rather than on a centralized exchange. Securities traded on OTC markets generally do not meet the listing requirements of major exchanges, and these markets are typically less transparent and subject to fewer regulations. Companies listed on OTC markets may disclose less public information, which can increase risks for investors. The OTC Markets Group operates platforms within this segment, providing quotation and trading services for a wide range of securities not listed on formal exchanges.