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The Nasdaq Stock
Stock
Market (/ˈnæzˌdæk/ ( listen)) is an American stock exchange. It is the second-largest exchange in the world by market capitalization, behind only the New York Stock Exchange located in the same city.[2] The exchange platform is owned by Nasdaq, Inc.,[3] which also owns the Nasdaq Nordic
Nasdaq Nordic
(formerly known as OMX) and Nasdaq Baltic stock market network and several other US stock and options exchanges.

Contents

1 History

1.1 1971–1999 1.2 2000–present

2 Quote availability 3 Trading schedule 4 Market tiers 5 Average annualized growth rate 6 See also 7 References 8 External links

History[edit] 1971–1999[edit] When it was founded, NASDAQ
NASDAQ
stood for the acronym of "National Association of Securities Dealers Automated Quotations".[4] Nasdaq was founded in 1971 by the National Association of Securities Dealers (NASD),[5] which divested itself of Nasdaq in a series of sales in 2000 and 2001. The Nasdaq Stock
Stock
Market is owned and operated by Nasdaq, Inc., the stock of which was listed on its own securities exchange on July 2, 2002, under the ticker symbol NDAQ.

Former logo

When the Nasdaq Stock
Stock
Market began trading on February 8, 1971, it was the world's first electronic stock market.[5] At first, it was merely a quotation system and did not provide a way to perform electronic trades.[6][not in citation given] The Nasdaq Stock
Stock
Market helped lower the spread (the difference between the bid price and the ask price of the stock) but was unpopular among brokerages which made much of their money on the spread. The Nasdaq Stock
Stock
Market eventually assumed the majority of major trades that had been executed by the over-the-counter (OTC) system of trading, although there are still many securities traded in this fashion. As late as 1987, the Nasdaq exchange was still commonly referred to as "OTC" in media[7] and also in the monthly Stock
Stock
Guides (stock guides and procedures) issued by Standard & Poor's Corporation.[citation needed] Over the years, the NASDAQ
NASDAQ
Stock
Stock
Market became more of a stock market by adding trade and volume reporting and automated trading systems. It was also the first stock market in the United States
United States
to start trading online, highlighting NASDAQ
NASDAQ
-traded companies and closing with the declaration that the NASDAQ
NASDAQ
Stock
Stock
Market is "the stock market for the next hundred years". The NASDAQ
NASDAQ
Stock
Stock
Market attracted new growth companies such as Microsoft, Apple, Cisco, Oracle and Dell and helped modernize the IPO. Its main index is the NASDAQ
NASDAQ
Composite, which has been published since its inception. However, its exchange-traded fund tracks the large-cap NASDAQ-100
NASDAQ-100
index, which was introduced in 1985 alongside the NASDAQ 100 Financial Index which tracks the largest 100 companies in terms of market capitalization. In 1992, the Nasdaq Stock
Stock
Market joined with the London Stock
Stock
Exchange to form the first intercontinental linkage of securities markets.[8] The National Association of Securities Dealers spun off the Nasdaq Stock
Stock
Market in 2000 to form a publicly traded company.

The NASDAQ Composite
NASDAQ Composite
index spiked in the late 1990s and then fell sharply as a result of the dot-com bubble.

2000–present[edit]

Studio

On March 10, 2000, the NASDAQ Composite
NASDAQ Composite
peaked at 5,132.52, but fell to 3227 by April 17,[9] and in the following 30 months fell 78% from its peak.[10] In 2006, the status of the Nasdaq Stock
Stock
Market was changed from a stock market to a licensed national securities exchange.[11] In 2007, Nasdaq merged with OMX, a leading exchange operator in the Nordic countries, expanded its global footprint, and changed its name to the NASDAQ
NASDAQ
OMX
OMX
Group.[12] To qualify for listing on the exchange, a company must be registered with the United States
United States
Securities and Exchange Commission (SEC), must have at least three market makers (financial firms that act as brokers or dealers for specific securities) and must meet minimum requirements for assets, capital, public shares, and shareholders. In February 2011, in the wake of an announced merger of NYSE Euronext with Deutsche Börse, speculation developed that NASDAQ
NASDAQ
OMX
OMX
and Intercontinental Exchange
Intercontinental Exchange
(ICE) could mount a counter-bid of their own for NYSE. NASDAQ
NASDAQ
OMX
OMX
could be[when?] looking to acquire the American exchange's cash equities business, ICE the derivatives business. At the time, "NYSE Euronext’s market value was $9.75 billion. Nasdaq was valued at $5.78 billion, while ICE was valued at $9.45 billion."[13] Late in the month, Nasdaq was reported to be considering asking either ICE or the Chicago Mercantile Exchange
Chicago Mercantile Exchange
to join in what would probably have to be, if it proceeded, an $11–12 billion counterbid.[14] The European Association of Securities Dealers Automatic Quotation System (EASDAQ) was founded as a European equivalent to the Nasdaq Stock
Stock
Market. It was purchased by NASDAQ
NASDAQ
in 2001 and became NASDAQ Europe. Operations were shut down, however, as a result of the burst of the dot-com bubble. In 2007, NASDAQ
NASDAQ
Europe was revived as Equiduct, and is currently[when?] operating under Börse Berlin.[15] On June 18, 2012, Nasdaq OMX
OMX
became a founding member of the United Nations Sustainable Stock
Stock
Exchanges initiative on the eve of the United Nations Conference on Sustainable Development
United Nations Conference on Sustainable Development
(Rio+20).[16] In November 2016, Nasdaq Chief Operating Officer Adena Friedman
Adena Friedman
was promoted to the role of CEO, becoming the first woman to run a major exchange in the U.S.[17] In 2016, Nasdaq earned $272 million in listings-related revenues.[18] Quote availability[edit] Nasdaq quotes are available at three levels:

Level 1 shows the highest bid and lowest ask—inside quote. Level 2 shows all public quotes of market makers together with information of market dealers wishing to buy or sell stock and recently executed orders.[19] Level 3 is used by the market makers and allows them to enter their quotes and execute orders.[20]

Trading schedule[edit] The Nasdaq Stock
Stock
Market sessions eastern time are: 4:00 am to 9:30 am premarket session 9:30 am to 4:00 pm normal trading session 4:00 pm to 8:00 pm postmarket session[21] Market tiers[edit] The Nasdaq Stock
Stock
Market has three different market tiers:

Capital Market (small cap) is an equity market for companies that have relatively small levels of market capitalization. Listing requirements for such "small cap" companies are less stringent than for other Nasdaq markets that list larger companies with significantly higher market capitalization.[22] Global Market (mid cap) is made up of stocks that represent the Nasdaq Global Market. The Global Market consists of 1,450 stocks that meet Nasdaq's strict financial and liquidity requirements, and corporate governance standards. The Global Market is less exclusive than the Global Select Market.[23] Global Select Market (NASDAQ-GS large cap) is a market capitalization-weighted index made up of US-based and international stocks that represent the Global Select Market Composite. The Global Select Market consists of 1,200 stocks that meet Nasdaq's strict financial and liquidity requirements and corporate governance standards. The Global Select Market is more exclusive than the Global Market. Every October, the Nasdaq Listing Qualifications Department reviews the Global Market Composite to determine if any of its stocks have become eligible for listing on the Global Select Market.[24][25]

Average annualized growth rate[edit] As of June 2015, the Nasdaq Stock
Stock
Market had an average annualized growth rate of 9.24% since its opening in February 1971. Since the end of the recession in June 2009 however, it has increased by 18.29% per year.[26] See also[edit]

New York City
New York City
portal

United States
United States
corporate law Advanced Computerized Execution System ACT (Nasdaq) Directors Desk Economy of New York City Nasdaq-100 Nasdaq futures Nasdaq, Inc. List of stock exchanges List of stock exchanges in the Americas List of stock exchange mergers in the Americas

References[edit]

^ "Nasdaq Companies". Archived from the original on February 13, 2011. Retrieved March 22, 2016.  ^ "Monthly Reports". World-Exchanges.org. World Federation of Exchanges. Archived from the original on August 17, 2014. Retrieved June 3, 2015.  ^ Nasdaq. "Nasdaq – Business Solutions & Services". Archived from the original on October 20, 2016. Retrieved October 23, 2016.  ^ Frequently Asked Questions. NASDAQ.com. NASDAQ, n.d. Web. December 23, 2001. Archived February 13, 2011, at WebCite ^ a b Terrell, Ellen. "History of the American and Nasdaq Stock Exchanges". LOC.gov. Library of Congress Business Reference Services. Archived from the original on April 14, 2013. Retrieved April 27, 2013.  ^ "Nasdaq.com Frequently Asked Questions". Retrieved October 23, 2016.  ^ Gilpin, Kenneth N. (July 3, 1987). "COMPANY NEWS; AN ERRATIC QUARTER FOR STOCK MARKETS". The New York Times. ISSN 0362-4331. Archived from the original on August 1, 2017. Retrieved February 1, 2017.  ^ Odekon, Mehmet (March 17, 2015). Booms and Busts: An Encyclopedia of Economic History from the First Stock
Stock
Market Crash of 1792 to the Current Global Economic Crisis: An Encyclopedia of Economic History from the First Stock
Stock
Market Crash of 1792 to the Current Global Economic Crisis. Routledge. ISBN 9781317475750. Archived from the original on August 3, 2017.  ^ " NASDAQ Composite
NASDAQ Composite
daily index". Archived from the original on November 22, 2010.  ^ Glassman, James K. (February 11, 2015). "3 Lessons for Investors From the Tech Bubble". Kiplinger's Personal Finance. Archived from the original on April 15, 2017.  ^ Walsh, Michelle. "Nasdaq Stock
Stock
Market Becomes A National Securities Exchange; Changes Market Designations". Archived from the original on December 17, 2013.  ^ Lucchetti, Aaron; MacDonald, Alistair (May 26, 2007). "Nasdaq Lands OMX
OMX
for $3.7 Billion; Are More Merger Deals on the Way?". Wall Street Journal. ISSN 0099-9660. Archived from the original on July 31, 2017. Retrieved July 21, 2017.  ^ De la Merced, Michael J., "Nasdaq and ICE Hold Talks Over Potential N.Y.S.E. Bid" Archived January 20, 2012, at the Wayback Machine., The New York Times Dealbook, February 18, 2011, 12:46 pm. Retrieved February 18, 2011. ^ Fraser, Michelle E., "Nasdaq May Ask CME or ICE for Help in NYSE Counterbid, WSJ Says" Archived July 29, 2014, at the Wayback Machine., Bloomberg, February 26, 2011 9:30 AM ET. Retrieved March 1, 2011. ^ "Easdaq Makes A Comeback As Equiduct". Archived from the original on February 13, 2011.  ^ "Sustainable Stock
Stock
Exchanges Initiative: Exchanges listing over 4,600 companies commit to promoting sustainability". Reuters.com. Reuters. Archived from the original on May 13, 2014. Retrieved May 13, 2014.  ^ "Nasdaq's New CEO Attributes Her Success to an 'Eclectic' Career Path". Fortune. November 15, 2016. Archived from the original on November 17, 2016. Retrieved November 17, 2016.  ^ Osipovich, Alexander (October 26, 2017). "Startup Exchange Cleared to Take on NYSE, Nasdaq for Stock
Stock
Listings". Wall Street Journal. New York City, United States. Archived from the original on October 26, 2017. Retrieved October 26, 2017.  ^ "Order Book, Level 2 Market Data, and Depth of Market". Daytrading. About.com. Archived from the original on February 13, 2011.  ^ "Nasdaq Level III Quote". Archived from the original on April 13, 2014.  ^ "Nasdaq Trading Schedule". Nasdaq.com. Archived from the original on April 17, 2014. Retrieved April 20, 2014.  ^ "Definition of 'Nasdaq SmallCap Market', now known as Nasdaq Capital Market". Investopedia.com. Archived from the original on August 4, 2013. Retrieved August 25, 2013.  ^ "Definition of 'Nasdaq Global Market Composite'". Investopedia.com. Archived from the original on September 17, 2013. Retrieved August 25, 2013.  ^ "Definition of 'Nasdaq Global Select Market Composite'". Investopedia.com. Archived from the original on October 4, 2013. Retrieved August 25, 2013.  ^ Pinto, Jerald E.; Henry, Elaine; Robinson, Thomas R.; Stowe, John D. (2010). Equity Asset Valuation. CFA Institute Investment Series. 27 (2 ed.). John Wiley & Sons. p. 6. ISBN 9780470579657. Archived from the original on May 10, 2013. Retrieved March 4, 2013. [...] NASDAQ-GS stands for 'Nasdaq Global Select Market,' [...]  ^ "Measuring Worth – Measures of worth, inflation rates, saving calculator, relative value, worth of a dollar, worth of a pound, purchasing power, gold prices, GDP, history of wages, average wage". measuringworth.com. Archived from the original on October 4, 2015. Retrieved October 2, 2015. 

External links[edit]

Wikimedia Commons has media related to NASDAQ.

YouTube SpotlightOfficial website

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Nasdaq, Inc.

Operator of the NASDAQ
NASDAQ
and OMX
OMX
stock exchange systems

Exchanges

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Indexes

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Nordic 40 Stockholm 30

Other holdings

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NASDAQ
Private Market

v t e

Financial markets

Types of markets

Primary market Secondary market Third market Fourth market

Types of stocks

Common stock Golden share Preferred stock Restricted stock Tracking stock

Share capital

Authorised capital Issued shares Shares outstanding Treasury stock

Participants

Broker-dealer Day trader Floor broker Floor trader Investor Market maker Proprietary trader Quantitative analyst Regulator Stock
Stock
trader

Exchanges

Electronic communication network List of stock exchanges

Trading hours

Multilateral trading facility Over-the-counter

Stock
Stock
valuation

Alpha Arbitrage pricing theory Beta Bid–ask spread Book value Capital asset pricing model Capital market
Capital market
line Dividend
Dividend
discount model Dividend
Dividend
yield Earnings per share Earnings yield Net asset value Security characteristic line Security market line T-model

Trading theories and strategies

Algorithmic trading Buy and hold Contrarian investing Day trading Dollar cost averaging Efficient-market hypothesis Fundamental analysis Growth stock Market timing Modern portfolio theory Momentum investing Mosaic theory Pairs trade Post-modern portfolio theory Random walk hypothesis Sector rotation Style investing Swing trading Technical analysis Trend following Value investing

Related terms

Block trade Cross listing Dark pool Dividend Dual-listed company DuPont analysis Efficient frontier Flight-to-quality Haircut Initial public offering Long Margin Market anomaly Market capitalization Market depth Market manipulation Market trend Mean reversion Momentum Open outcry Position Public float Public offering Rally Returns-based style analysis Reverse stock split Share repurchase Short selling Slippage Speculation Stock
Stock
dilution Stock
Stock
market index Stock
Stock
split Trade Uptick rule Volatility Voting interest Yield

v t e

Major United States
United States
stock market indices

Dow Jones Industrial Average
Dow Jones Industrial Average
(30 large stocks; popular indicator) NYSE Composite Index (all companies on the NYSE) Nasdaq Composite
Nasdaq Composite
Index (all companies on the NASDAQ; technology-heavy) NASDAQ-100
NASDAQ-100
Index (100 large NASDAQ
NASDAQ
non-financial stocks) S&P 500 Index (500 large companies; general market analysis) Russell 2000 Index
Russell 2000 Index
(small-cap stocks) Wilshire 5000
Wilshire 5000
Index (

.