What is NASDAQ?
NASDAQ, which stands for National Association of Securities Dealers Automated Quotations, is an American stock exchange that was founded in 1971. With over 3000 member companies, including popular technology companies like Amazon, Apple, eBay, Google, and Microsoft, it is the biggest electronic securities exchange in the U.S. It is publicly owned, and makes around 1.8 billion trades per day. Its operating time is from 9:30 am to 4:00 pm eastern time.
The NASDAQ was the first electronic stock exchange in the world. It was founded with the purpose of popularizing over-the-counter (OTC) securities markets. It wasn't until the 1990s, however, that the NASDAQ was seen as a competitor of the New York Stock Exchange. In 1998, it merged with AMEX, or the American Stock Exchange, to create the NASDAQ-AMEX market group. Although they still operate separately, this increased the NASDAQ's ability to compete with the NYSE.
The NASDAQ is based in New York City (in Times Square). However, unlike the NYSE, stock trading is done completely electronically. Its counterpart to the NYSE's Dow Jones Industrial Average is the NASDAQ 100 (these are both stock indexes, which many people use to determine the overall value of the stock market). The NASDAQ 100 is made up of the companies within NASDAQ with the largest trading value, carefully drawn from a variety of sectors. Many people pay close attention to changes in the NASDAQ 100 for indications of the market as a whole.
In order for companies to be listed under the NASDAQ, its stocks must maintain a trading price of at least one dollar, and the overall value of its stocks must be at least 1.1 million dollars. If a company under NASDAQ fails to meet these requirements at any point, it is traded to the NASDAQ Small Caps Market.
