10 Things You Should Know About the NASDAQ Stock Exchange

The National Association of Securities Dealers Automated Quotations (NASDAQ)
The National Association of Securities Dealers Automated Quotations (NASDAQ)The National Association of Securities Dealers Automated Quotations (NASDAQ)

A U.S. based Stock Exchange; NASDAQ (abbreviation for National Association of Securities Dealers Automated Quotations) is the largest electronic stock market for equity securities in the U.S. It stands apart from the other stock exchanges because of its trendsetting capabilities. NASDAQ has usually been the first to explore and develop most of the current concepts of how stock markets operate.

Below are the ten things that will make you appreciate NASDAQ even more.

1. Amongst the global counterparts; the NASDAQ ranks first in trading volume and second in terms of market capitalization.

2. NASDAQ was founded by the National Association of Securities Dealers (NASD) in the year 1971. The association later on disengaged itself from the stock exchange by selling it off in parts throughout the years 2000 and 2001.

3. Trading at NASDAQ commenced on February 8, 1971.

4. With its computer bulletin board set-up, it was the world’s first electronic stock market. It was a rung above the Over-the-Counter trading markets. The year 1987 saw NASDAQ replacing the old telephonic trading systems with the more efficient Small Order Execution System (SOES) where trades were honored and monitored in a better way.

5. On July 2, 2002, the owner of this stock exchange giant, NASDAQ OMX Group, got themselves listed on their own stock exchange under the ticker symbol NASDAQ: NDAQ.

6. It was the first stock market to introduce and facilitate online trading that is so common today.

7. It is regulated by Financial Industry Regulatory Authority (FINRA).

8. In 1992, NASDAQ built the first intercontinental linkage of securities markets by joining with the London Stock Exchange. In 2000, NASDAQ went public and was renamed as NASDAQ Stock Market, Inc. It became a licensed national exchange in 2006.

9. In order to get listed on NASDAQ, a company must meet the eligibility requirements such as minimum capital, assets, and shareholding structure. It must have at least three market makers. It must be registered with the United States Securities and Exchange Commission (SEC).

10. NASDAQ quotes are categorized in three levels. The highest bid and lowest offer, i.e. the inside quote is listed under level 1. The public quotes of market makers, the information related to market dealers, and latest executed orders are listed under level 2. The market makers use level 3 to place quotations and execute orders.