Final answer:
The statement is false. Both the NYSE and NASDAQ are public stock exchanges; private and public markets refer to company ownership, not exchanges. The NYSE operates with a physical floor, the NASDAQ electronically.
Step-by-step explanation:
The statement that private markets are like the NYSE, where transactions are handled by members of the organization, and public markets are like the NASDAQ, where anyone can make transactions, is false. Private markets and public markets refer to the accessibility and ownership of companies rather than the exchanges themselves.
The NYSE and NASDAQ are both public market exchanges where stocks of listed companies are traded; however, the NYSE has a physical trading floor while the NASDAQ operates electronically. In a market economy, markets such as the NYSE bring together buyers and sellers to conduct transactions based on supply and demand, whereas a command economy is based on government ownership and control.
The notion of private and public firms pertains to whether the firms are privately held, with more restricted ownership, or publicly traded with shares available to the general public.