The National Association of Securities Dealers Automated Quotation (NASDAQ) is a global electronic marketplace and stock exchange where investors can trade in securities of various companies. Founded in 1971, NASDAQ is one of the largest stock exchanges in the United States, second only to the New York Stock Exchange (NYSE).
NASDAQ operates as a dealer's market, meaning that trades are conducted directly between buyers and sellers, rather than through a centralized trading floor. It serves as a platform for trading stocks, options, and other financial instruments.
As a fully automated system, NASDAQ utilizes advanced computer technology to match buy and sell orders. It operates on a telecommunications network that connects all participating market participants, including brokerage firms and market makers. This setup allows for rapid and efficient trading, with transactions executed within seconds.
NASDAQ is known for listing technology companies, although it also includes firms from various other sectors. It provides a venue for companies, particularly those in the technology industry, to raise capital through initial public offerings (IPOs) by selling their shares to the public. The exchange is also home to some of the world's most influential and innovative companies, including major technology giants.
Overall, NASDAQ has played a pivotal role in the development of electronic trading and has greatly influenced the evolution of financial markets. It offers investors around the world access to a wide range of investment opportunities and plays a vital role in facilitating the global economy.
