T-Mobile switching from NYSE to NASDAQ later this month

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Way back in mid-2013, T-Mobile officially became a publicly-traded company and joined the New York Stock Exchange in the process, with John Legere even ringing the opening bell. After two years and lots of growth, though, T-Mobile is switching things up.

T-Mobile has decided to transfer its stock exchange listing from the New York Stock Exchange to the NASDAQ Global Select Market. The change will take effect on October 26 after the market closes. Despite changing markets, though, T-Mobile will continue to trade under the symbol “TMUS.”

Here’s what T-Mobile CFO Braxton Carter had to say about the change:

“As America’s Un-carrier, we’re all about unleashing wireless for all Americans. Our business model is industry innovation and disruption. We can’t get to what’s next fast enough. So we’re thrilled to be joining all the other future-focused innovators listed on NASDAQ. This is going to be fun.”

Meanwhile, here’s a statement from Bruce Aust, NASDAQ’s Vice Chairman:

“We are proud to welcome T-Mobile US to the NASDAQ family and look forward to a successful partnership with the company and its shareholders. T-Mobile US is one of the country’s most recognized technology brands and will join 72 percent of all public technology companies listed in the U.S. with its transfer to NASDAQ.”

T-Mobile hasn’t provided any information about why it decided to switch stock exchanges. However, we can made some educated examples. One possibility could be that NASDAQ has lower yearly listing fees, with NYSE costing up to $500,000, while Nasdaq is only around $27,500. Additionally, Nasdaq is home to many more tech companies than the NYSE; as NASDAQ’s Bruce Vost notes, 72 percent of all publicly-traded tech firms are a part of NASDAQ.

Source: T-Mobile Investor

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  • Bryck

    Maybe they’ll OFFICIALLY announce the launch of Band 12 in NYC as well on the same date.

  • Adam

    When you are CEO, stock volatility is your friend. The board gives you options when the stock is low and you can sell when the stock is high. The bigger the swing, the more you earn. The electronic market maker technique used by NASDAQ produces more volatility than NYSE specialist.

  • AnthonyRyan89

    Not to sound dumb but what is difference from NYSE & NASDAQ

    • superg05

      The NYSE And Nasdaq: How They Work

      By Investopedia Staff
      | Updated October 08, 2015
      AAA |

      Whenever someone talks about the stock market as a place
      where equities are exchanged between buyers and sellers, the first thing
      that comes to mind is either the New York Stock Exchange (NYSE) or Nasdaq,
      and there’s no debate over why. These two exchanges account for the
      trading of a major portion of equities in North America and worldwide.
      At the same time, however, the NYSE and Nasdaq are very different in the
      way they operate and in the types of equities traded therein. Knowing
      these differences will help you better understand the function of a stock exchange and the mechanics behind the buying and selling of stocks.

      Location, Location, Location
      The location of an
      exchange refers not so much to its street address but the “place” where
      its transactions take place. On the NYSE, all trades occur in a physical
      place, on the trading floor in New York City. So, when you see those
      guys waving their hands on TV or ringing a bell before opening the
      exchange, you are seeing the people through whom stocks are transacted
      on the NYSE.

      The Nasdaq, on the other hand, is located not on a physical trading
      floor but on a telecommunications network. People are not on a floor of
      the exchange matching buy and sell orders on behalf of investors.
      Instead, trading takes place directly between investors and their buyers
      or sellers, who are the market makers
      (whose role we discuss below in the next section), through an elaborate
      system of companies electronically connected to one another.

      Dealer Vs. Auction Market
      The fundamental difference between the NYSE and Nasdaq is in the way securities on the exchanges are transacted between buyers and sellers. The Nasdaq is a dealer’s market,
      wherein market participants are not buying from and selling to one
      another directly but through a dealer, who, in the case of the Nasdaq,
      is a market maker. The NYSE is an auction market,
      wherein individuals are typically buying and selling between one
      another and there is an auction occurring; that is, the highest bidding
      price will be matched with the lowest asking price.

      Traffic Control
      Each stock market has its own
      traffic control police officer. Yup, that’s right, just as a broken
      traffic light needs a person to control the flow of cars, each exchange
      requires people who are at the “intersection” where buyers and sellers
      “meet,” or place their orders. The traffic controllers of both exchanges
      deal with specific traffic problems and, in turn, make it possible for
      their markets to work. On the Nasdaq, the traffic controller is known as
      the market maker, who, we already mentioned, transacts with buyers and
      sellers to keep the flow of trading going. On the NYSE, the exchange
      traffic controller is known as the specialist, who is in charge of
      matching up buyers and sellers.

      The definitions of the role of the market maker
      and that of the specialist are technically different; a market maker
      creates a market for a security, whereas a specialist merely facilitates
      it. However, the duty of both the market maker and specialist is to
      ensure smooth and orderly markets for clients. If too many orders get
      backed up, the traffic controllers of the exchanges will work to match
      the bidders with the askers to ensure the completion of as many orders
      as possible. If there is nobody willing to buy or sell, the market
      makers of the Nasdaq and the specialists of the NYSE will try to see if
      they can find buyers and sellers and even buy and sell from their own
      inventories.

      Perception and Cost
      One thing that we can’t
      quantify but must acknowledge is the way that the companies on each of
      these exchanges are generally perceived by investors. The Nasdaq is
      typically known as a high-tech market, attracting many of the firms
      dealing with the internet or electronics. Accordingly, the stocks on
      this exchange are considered to be more volatile and growth oriented. On
      the other hand, the companies on NYSE are perceived to be more well
      established. Its listings include many of the blue chip firms and
      industrials that were around before our parents, and its stocks are
      considered to be more stable and established.

      Whether a stock trades on the Nasdaq or the NYSE is not necessarily a
      critical factor for investors when they are deciding on stocks to
      invest in. However, because both exchanges are perceived differently,
      the decision to list on a particular exchange is an important one for
      many companies. A company’s decision to list on a particular exchange
      is also affected by the listing costs and requirements set by each
      individual exchange. The entry fee a company can expect to pay on the
      NYSE is up to $250,000 while on the Nasdaq, it is only $50,000 to
      $75,000. Yearly listing fees are also a big factor: on the NYSE, they
      based on the number of shares of a listed security, and are capped at
      $500,000, while the Nasdaq fees come in at around $27,500. So we can
      understand why the growth-type stocks (companies with less initial
      capital) would be found on the Nasdaq exchange.

      Public Vs. Private
      Prior to March 8, 2006, the
      final major difference between these two exchanges was their type of
      ownership: the Nasdaq exchange was listed as a publicly-traded
      corporation, while the NYSE was private. This all changed in March 2006
      when the NYSE went public after being a not-for-proft exchange for
      nearly 214 years. Most of the time, we think of the Nasdaq and NYSE as
      markets or exchanges, but these entities are both actual businesses
      providing a service to earn a profit for shareholders.

      The shares of these exchanges, like those of any public company, can
      be bought and sold by investors on an exchange. (Incidentally, both the
      Nasdaq and the NYSE trade on themselves.) As publicly traded companies,
      the Nasdaq and the NYSE must follow the standard filing requirements set
      out by the Securities and Exchange Commission.
      Now that the NYSE has become a publicly traded corporation, the
      differences between these two exchanges are starting to decrease, but
      the remaining differences should not affect how they function as
      marketplaces for equity traders and investors.

      The Bottom Line
      Both the NYSE and the Nasdaq
      markets accommodate the major portion of all equities trading in North
      America, but these exchanges are by no means the same. Although their
      differences may not affect your stock picks, your understanding of how
      these exchanges work will give you some insight into how trades are executed and how a market works.

      Read more: The NYSE And Nasdaq: How They Work http://www.investopedia.com/articles/basics/03/103103.asp#ixzz3omoDk6Ad

    • NYSE is the New York Stock Exchange, which are called the blue chips. NASDAQ is the technology stocks.

  • steveb944

    Good for them. Hope it helps overall growth

  • superg05

    -i like how the mod or writer blocked my comment and added the additional info it provided into the article

  • Arnold Shoon

    I for one think this is a great move… Tmobile is a technology company not a utility… And to add to that what John L has done to the wireless industry is phenomenal… He has empowered us to move from telephone devices to data devices… Internationally nonetheless

  • TylerCameron

    What does this mean?

  • Philip

    All I know is NASDAQ is for smaller stock. NYSE is for blue chip. Why do we need two exchanges? I think there is a 3rd one here. Mercantile exchange something.