Thinking about investing in the US market, but not quite sure how it works?
What is the US stock market?
The US stock market is filled with multiple stock exchanges, including the Nasdaq and the New York Stock Exchange, which are marketplaces where buyers and sellers can trade stocks and other equities. Two of the well-known
What gets listed on the US stock market?
The US stock market doesn’t let just any company list. Instead, each stock exchange has different listing requirements.
Broadly, companies that list must fulfil requirements that can show they’re big enough and sophisticated enough to be investments.
These can include requirements like:
- Having a minimum amount of shares to offer the public to buy and sell,
- Meeting a minimum market cap, and
- Having a minimum number of shareholders.
This helps ensure that investors have quality companies to invest in.
What are the two major US stock exchanges?
There are two major stock exchanges in the US. They’re both based in New York. They’re known as the New York Stock Exchange (NYSE), and the Nasdaq.
What is the NYSE?
The NYSE is on Wall Street and has been around since 1790. Companies that list on the NYSE are required to have 400 shareholders and 1.1 million shares outstanding, which means shares that can be traded on the open market.
What is the Nasdaq?
The Nasdaq, which stands for National Association of Securities Dealers Automated Quotation System (we see why they shortened it!), was created in 1971. It has lower listing fees than the NYSE.
Broadly, the NYSE has some of the oldest companies in the US, while the Nasdaq tends to have more tech, consumer goods, and healthcare stocks.
Some companies are listed on both stock exchanges, which is known as dual-listing. This gives them exposure to more investors and capital.
What time is the US market open?
The Nasdaq and NYSE are open between 9:30am and 4:00pm EDT for trading – that’s 12:30am - 07:30am Sydney/Melbourne time (AEST).
When is the US market closed?
Outside of trading hours, the NYSE and Nasdaq are also closed during particular public holidays. Over the next few years, these are:
| Holiday | 2023 | 2024 | 2025 |
|---|---|---|---|
| New Years Day | Monday, January 2 | Monday, January 1 | Wednesday, January 1 |
| Martin Luther King, Jr. Day | Monday, January 16 | Monday, January 15 | Monday, January 20 |
| Washington's Birthday | Monday, February 20 | Monday, February 19 | Monday, February 17 |
| Good Friday | Friday, April 7 | Friday, March 29 | Friday, April 18 |
| Memorial Day | Monday, May 29 | Monday, May 27 | Monday, May 26 |
| Juneteenth National Independence Day | Monday, June 19 | Wednesday, June 19 | Thursday, June 19 |
| Independence Day | Tuesday, July 4 | Thursday, July 4 | Friday, July 4 |
| Labor Day | Monday, September 4 | Monday, September 2 | Monday, September 1 |
| Thanksgiving Day | Thursday, November 23 | Thursday, November 28 | Thursday, November 27 |
| Christmas Day | Monday, December 25 | Wednesday, December 25 | Thursday, December 25 |
Why is it important to know how the US market works?
Once you understand how the US market works, you’ll be able to decide whether there’s a place for it in your long-term investing portfolio.
