A global electronic marketplace for buying and selling securities, such as stocks and bonds. It was founded in 1971 by the National Association of Securities Dealers (NASD) and is now owned and operated by Nasdaq, Inc. Key points about NASDAQ:
- History: NASDAQ was the world’s first electronic stock market. It was created to enable investors to trade securities on a computerized, speedy, and transparent system, without the need for a physical trading floor.
- Listings: NASDAQ is home to many large technology companies, such as Apple, Microsoft, Amazon, and Google (Alphabet). It also lists many other types of companies, including those in the healthcare, consumer services, and industrial sectors.
- Market tiers: NASDAQ has three market tiers:
- The NASDAQ Global Select Market, which has the highest initial listing standards of any exchange in the world
- The NASDAQ Global Market, which has slightly lower listing requirements than the NASDAQ Global Select Market
- The NASDAQ Capital Market, which has the lowest listing requirements of NASDAQ’s three market tiers
- Trading system: NASDAQ uses a fully electronic system for trading securities, which matches buyers and sellers based on price and time priority. This system enables faster and more efficient trading compared to traditional floor-based exchanges.
- Indexes: NASDAQ is known for its market indexes, which track the performance of various market sectors and segments. The most well-known index is the NASDAQ Composite, which includes all stocks listed on the NASDAQ stock market.
- Regulation: As a stock exchange, NASDAQ is regulated by the U.S. Securities and Exchange Commission (SEC) and is subject to the rules and oversight of the Financial Industry Regulatory Authority (FINRA).
NASDAQ has played a significant role in revolutionizing stock trading through its electronic trading system and has become a leading global marketplace for buying and selling securities, particularly for technology companies.