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. The exchange platform is owned
by Nasdaq, Inc., which also owns the
Nasdaq Nordic (formerly known
as OMX) and Nasdaq Baltic stock market network and several other US
stock and options exchanges.
2 Quote availability
3 Trading schedule
4 Market tiers
5 Average annualized growth rate
6 See also
8 External links
When it was founded,
NASDAQ stood for the acronym of "National
Association of Securities Dealers Automated Quotations". Nasdaq was
founded in 1971 by the National Association of Securities Dealers
(NASD), which divested itself of Nasdaq in a series of sales in
2000 and 2001. The Nasdaq
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.
When the Nasdaq
Stock Market began trading on February 8, 1971, it was
the world's first electronic stock market. At first, it was merely
a quotation system and did not provide a way to perform electronic
trades.[not in citation given] The Nasdaq
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.
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 and also in the monthly
(stock guides and procedures) issued by Standard & Poor's
Over the years, the
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 to start trading
NASDAQ -traded companies and closing with the
declaration that the
Stock Market is "the stock market for the
next hundred years". The
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 Composite, which has been published since
its inception. However, its exchange-traded fund tracks the large-cap
NASDAQ-100 index, which was introduced in 1985 alongside the NASDAQ
100 Financial Index which tracks the largest 100 companies in terms of
In 1992, the Nasdaq
Stock Market joined with the London
to form the first intercontinental linkage of securities markets.
The National Association of Securities Dealers spun off the Nasdaq
Stock Market in 2000 to form a publicly traded company.
NASDAQ Composite index spiked in the late 1990s and then fell
sharply as a result of the dot-com bubble.
On March 10, 2000, the
NASDAQ Composite peaked at 5,132.52, but fell
to 3227 by April 17, and in the following 30 months fell 78% from
In 2006, the status of the Nasdaq
Stock Market was changed from a
stock market to a licensed national securities exchange.
In 2007, Nasdaq merged with OMX, a leading exchange operator in the
Nordic countries, expanded its global footprint, and changed its name
To qualify for listing on the exchange, a company must be registered
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
Intercontinental Exchange (ICE) could mount a counter-bid of their own
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." 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.
The European Association of Securities Dealers Automatic Quotation
System (EASDAQ) was founded as a European equivalent to the Nasdaq
Stock Market. It was purchased by
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 Europe was revived as Equiduct,
and is currently[when?] operating under Börse Berlin.
On June 18, 2012, Nasdaq
OMX became a founding member of the United
Stock Exchanges initiative on the eve of the
United Nations Conference on Sustainable Development
United Nations Conference on Sustainable Development (Rio+20).
In November 2016, Nasdaq Chief Operating Officer
Adena Friedman was
promoted to the role of CEO, becoming the first woman to run a major
exchange in the U.S. In 2016, Nasdaq earned $272 million in
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.
Level 3 is used by the market makers and allows them to enter their
quotes and execute orders.
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
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
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.
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.
Average annualized growth rate
As of June 2015, the Nasdaq
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
New York City
New York City portal
United States corporate law
Advanced Computerized Execution System
Economy of New York City
List of stock exchanges
List of stock exchanges in the Americas
List of stock exchange mergers in the Americas
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