National Association of Securities Dealers Automated Quotations (NASDAQ)is defined as a global electronic market wherein you may sell and buy securities. The National Association of Securities Dealers (NASD), currently known as the Financial Industry Regulatory Authority(FINRA), founded NASDAQ. The market was established such that investors may be able to trade securities in a fast, transparent, and computerized system.
There’s really no trading floor in this electronic market for the buying and selling of publicly traded securities, and brokers can perform transactions over the phone or online. Over-the-counter (OTC) securities are quoted using this system. Since this is an electronic market, there are no market specialists to purchase unfilled orders, as there are on other exchanges.
The NASDAQ is split into two categories: the NASDAQ National Market and the NASDAQ Smallcap Market. The NASDAQ National Market is a stock exchange that exchanges securities from larger companies with substantial trading volumes. On the other hand, securities of developing growth companies are traded on the NASDAQ Smallcap Market.
The NASDAQ Composite, an index of over three thousand stocks listed on the NASDAQ exchange has the world’s leading technology and biotech companies like Microsoft, Amazon, Oracle, Google, Intel, and Apple.In2006, Nasdaq withdrew from the NASD and started operating as a national securities exchange.in 2007, it merged with the Scandinavian exchange group OMX to be the Nasdaq OMX Group, the world’s largest exchange corporation, driving one out of ten securities transactions.
NASDAQ’s Two Major Indexes:
•The NASDAQ Composite index
•The NASDAQ 100 index