The National Association of Securities Dealers Automated Quotations (NASDAQ) is an electronic stock exchange that operates in the United States. It is the second-largest stock exchange in the country, facilitating the trading of equities, options, futures contracts, and other financial instruments.
NASDAQ is known for its electronic trading system, which allows for faster and more efficient transactions compared to traditional trading floors. It was established in 1971 by the National Association of Securities Dealers (NASD) as the world's first electronic stock market. Initially, it primarily listed Over-The-Counter (OTC) stocks, which were not listed on traditional exchanges like the New York Stock Exchange.
As a dealer market, NASDAQ operates through a network of market participants known as market makers. These market makers buy and sell securities on behalf of investors, ensuring liquidity and maintaining fair prices. NASDAQ is also known for its technology sector focus, with many high-growth and innovative tech companies being listed on the exchange.
With its advanced trading platform, NASDAQ offers investors real-time price quotes, access to market data, and electronic trading. It allows for automated matching of buy and sell orders, speeding up trades and providing transparency in price discovery.
Overall, the National Association of Securities Dealers Automated Quotations (NASDAQ) is a prominent electronic stock exchange that facilitates the trading of various financial instruments, particularly in the technology sector, using advanced technology and automation.
