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Traders Magazine, October 2002

Editorial Staff

The Winner? *Firms listed on the New York Stock Exchange out earn those traded on Nasdaq at least five-to-one. That's the conclusion of a new study published by New York University's Stern School of Business. Between 1997 and 2000, NYSE-listed companies collectively booked $2 trillion in earnings from continuing operations while their counterparts at Nasdaq took in only $378 billion. The NYSE has endorsed the study, saying it underscores the relative unimportance of its chief rival. "Nasdaq companies have contributed surprisingly little of the net value-added of corporations," crowed NYSE chief economist Paul Bennett in an NYSE newsletter. Nasdaq declined to comment. The report does highlight Nasdaq's ongoing purge of financially-troubled companies. Since 1997, when the number of Nasdaq stocks peaked at 5,500, the market has been dropping stocks that trade below $1. Today, it counts about 3,800 names. About 500 of those are in danger of being delisted.

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