Nasdaq is a short name for the National Association of Securities Dealers Automated Quotations. It refers to a global electronic market place for people to buy and sell securities. It allows investors to trade securities on a system that is computerized, speedy, and transparent. Nasdaq can also be referred to as the Nasdaq composite, which is an index of more than 3,000 stocks, including those of the world-famous companies like Google, Amazon, Apple, and so on.
Nasdaq has no physical trading floor. The trading directly takes place between investors and market makers via an electronic system. The Nasdaq is a dealer’s market where the participants buy and sell stocks through the market maker, who is referred to as the dealer. The market makers try to keep the flow of trade growing by transacting with buyers and sellers. Their responsibility is to ensure clients orderly and smooth markets.
The Nasdaq is usually regarded as a high-tech market because it attracts lots of companies to deal with the stocks on the Internet. Since the Nasdaq is publicly traded, it has to abide by the standard filing requirements that are set by the Securities and Exchange Commission (SEC).
Nasdaq plays a very important role in stock exchanges. It holds a higher daily trading volume than any other stock exchange in the world. In the United States, it is the single most trusted ground for companies to list the shares on. In addition, almost all of the major global conglomerates have the stocks listed on the Nasdaq.
Besides, Nasdaq can provide personalized stock market alerts to investors as well as instant information on stock quotes, stock charts, global indices, and so on.