The National Association of Securities Dealers Automated Quotation (NASDAQ) is a widely recognized electronic marketplace in the United States for buying and selling stock shares. Established in 1971, NASDAQ was the world's first electronic stock exchange, and it continues to be one of the largest and most well-known global stock exchanges.
NASDAQ functions as a dealer's market, where market participants are electronically connected and can trade securities through computerized systems rather than through a physical trading floor. It specializes in facilitating the trading of technology stocks, but it also includes other industries such as financial, healthcare, and consumer goods.
Being a fully automated system, NASDAQ provides rapid and efficient processing of trades. It offers investors real-time market data, including bid and ask prices, allowing them to make informed investment decisions. NASDAQ uses a computerized quotation system to ensure transparency and fairness in the marketplace.
The NASDAQ Composite, an index constructed of thousands of stocks listed on the exchange, is often used as a benchmark to gauge the overall performance of technology-oriented securities and the stock market as a whole.
In summary, the National Association of Securities Dealers Automated Quotation (NASDAQ) is a pioneering electronic stock exchange that allows market participants to buy and sell securities electronically. It provides a fast, efficient, and transparent trading platform, focused primarily on technology stocks, but also featuring other industries.
