Introduction
The NASDAQ Stock Exchange is an electronic global electronic marketplace for stock trading. It stands for the National Association of Securities Dealers Automated Quotation system. It is the world’s first electronic stock exchange and second-largest stock exchange in the United States. The NASDAQ began in 1971 and was the first stock exchange to facilitate electronic trading in the US.
History
In 1971, the NASDAQ was created to facilitate trading of over-the-counter (OTC) stocks, which were not listed on the New York Stock Exchange (NYSE). The NASDAQ provided a centralized market platform for dealers and investors to trade stocks electronically, taking over the more chaotic OTC dealings of the day. Later, in the mid-1980s, the NASDAQ began to list more larger companies, expanding its ability to trade in stocks of considerable size. Over the past few decades, the NASDAQ has continued to evolve and become a more modern and technology oriented trading platform.
Today
Today, the NASDAQ continues to grow and provide an important market platform for investors. Over 3,300 companies are listed in the NASDAQ, including major tech companies such as Apple, Google and Microsoft. In addition to individual investors, major institutions such as mutual funds, investment banks and hedge funds also use the NASDAQ to trade stocks. With the NASDAQ hosting transactions worth billions of dollars every day, it is one of the most important trading platforms in the world.
Trading
The trading on the NASDAQ is very similar to trading on any stock exchange. Orders for stocks can be placed, and then executed when the price of the stock matches the price specified by the investor. Markets are open from 9:30 AM to 4:00 PM EST on the NASDAQ, and during these times, the exchange is extremely liquid. The NASDAQ is regulated by the Securities and Exchange Commission (SEC) which ensures that only legitimate trades happen in the exchange.
Conclusion
The NASDAQ Stock Exchange is one of the premier stock exchanges in the world. It is home to a broad range of companies ranging from tech giants to small startups. Trading on the NASDAQ is transparent, efficient and highly liquid, making it an attractive marketplace for investors. The regulations of the SEC ensure that fair and legitimate trading takes place in the exchange, making it one of the safest places for investors to trade.
