Pontificia Universidad Católica de Puerto Rico

Colegio de Administración de Empresas

Stock Research Case PART II:

Stock Research Case/Simulation

Joel Pérez de Hoyos

FINA 315-001

Prof. Lourdes Peña Santiago

21 de septiembre de 2022
Stock Research Case-Part II

1. Report the Market Cap from each stock (To be completed as we discussed Chapter 1)(2
points)

Stock Market Cap

PepsiCo Inc. $228.93B

Pfizer Inc. $257.83B

2. Mention the Market in which it is traded (NASDAQ, NYSE, etc.) (To be completed as we
discussed Chapter 2) (2 points)

Stocks Market(s)

PepsiCo Inc. (PEP) NASDAQ

Pfizer Inc. (PFE) NYSE

3. Summarize the similarities and differences between the two marketplaces in which your stocks
are traded (minimum two similarities and two differences, you should use your textbook to
answer this). Then answer the question: why do you think a company would choose one over
the other for listing its stock? (6 points)

Marketplaces are used to establish the prices for goods and other services. These rates are
determined by supply and demand where markets try to find some balance between themselves.
Both of these marketplaces (NASDAQ & NYSE) establish themselves as an all electronic
trading platform used to execute securities trades thanks to sophisticated telecommunications
devices where one can place, buy and sell orders very rapidly. The NASDAQ and the NYSE
both use market makers to improve liquidity and maintain a fair and orderly market. Differences
between broker and dealer markets is whether other traders provide liquidity or whether dealers
perform that function. In broker markets the orders from investors provide liquidity, and in dealer
markets the dealers provide liquidity. While trading on the NASDAQ is fully automated, the
NYSE still uses human specialists to monitor and occasionally carry out its electronic trading. A
company would choose to list on the NASDAQ exchange because of its lower listing fees and
lower minimum requirements to qualify for a listing. The fact that NASDAQ features
all-electronic trading is considered an advantage by many traders as well. Typical reasons for
listing on the NYSE include a big jump in increased liquidity. Accessing institutional funds
which are subject to restrictions on foreign investment. Establishing a commitment to local
markets.