NASDAQ

NASDAQ (National Association of Securities Dealers Automated Quotations) is an American stock exchange located in New York City, known for its high concentration of technology stocks. NASDAQ is the second-largest stock exchange in the world by market capitalization, after the New York Stock Exchange (NYSE). It is owned by the NASDAQ OMX Group.

History

NASDAQ was founded in 1971 by the National Association of Securities Dealers (NASD), now known as the Financial Industry Regulatory Authority (FINRA). It was the world's first electronic stock market, and initially, it was merely a quotation system and did not provide a way to perform electronic trades. The transition to a fully functional trading system was completed in 1982 when NASDAQ began to use its system to facilitate trading.

Market Structure

NASDAQ operates as a dealer's market, contrasting with the auction market structure of the NYSE. In a dealer's market, transactions are conducted through a dealer (market maker) rather than directly between buyers and sellers. NASDAQ is known for its modern electronic trading system which offers a speedy and efficient trading environment.

Listings

NASDAQ is home to many of the world's largest technology companies, including Apple Inc., Amazon.com, Google (now part of Alphabet Inc.), Microsoft, and Facebook (now part of Meta Platforms). It also lists companies from various sectors but is particularly noted for its high-tech orientation.

Trading Hours

NASDAQ's normal trading hours are from 9:30 AM to 4:00 PM Eastern Time, Monday through Friday. It also offers pre-market and after-hours trading sessions.

Influence and Impact

NASDAQ is a global electronic marketplace for buying and selling securities. It has helped attract a significant amount of venture capital into markets, particularly in the technology and internet sectors. NASDAQ's emphasis on technology has influenced the growth strategies of companies worldwide and has been pivotal in the public perception of the tech industry as a high-growth sector.

Challenges and Criticisms

NASDAQ has faced various challenges and criticisms, particularly concerning market regulation and the transparency of its operations. The rapid growth of technology companies and their high volatility has led to concerns about market stability and investor protection.

See Also

• Stock market
• List of stock exchanges
• Economy of the United States