Nasdaq Stock Market – The Biggest American Market

On February 8, 1971, the NASDAQ (National Association of Securities Dealers Automated Quotations) stock market was established. It is entirely owned and operated by the company The Nasdaq Stock Market, Inc. Today, it is the largest electronically-based online trading market for equities in America.

As the first electronic trading stock market NASDAQ has been functioning since the year 1971. Millions of investors throughout the world are using this exchange for trading. NASDAQ is the leader in attracting foreign listing and is the fastest growing stock market in America with more listed companies than any other market in U.S. Also it trades more shares than others. NASDAQ Composite is the main index in this exchange and is in use since the inception of the market. Its NASDAQ 100 index is tracked by exchange-traded funds for benchmarking. This is introduced on 1985 along with NASDAQ 100 Financial Index.

Since March 1 2007 5,100 large, small, and growing companies are now household names and trade using this electronic market. The system known as the American Financial Market share trade with two out of every seven corporations. Type A NYSE securities makeup for approximately 14-15% of the traded shares. Tape C, on the other hand, accounts for about 45-98% of volume traded by these companies.

The Stock Market named NASDAQ uses a sliding fee method based on the quantity of trading the market parts enact on the NASDAQ systems. The higher the volume done on this system, the lower the removal fee for liquidity and the more favourable the additional liquidity rebates.

In an online trading market system, there is huge competition between ‘Market Makers’ for the best buying and selling prices. Companies also consider these market makers as lucrative market since they are always ready to immediately invest capital to their registered stocks. Market makers also help immediate and continuous trading in a company’s stock. Buyers and sellers want to trade as frequent as possible and investors want to hold securities as much as possible, since they realize those stocks are readily saleable.

Quotes are available in 3 levels. Level I has the higher bd and lower offer – the inside quotes. Level II has all public quotes of market maker with info about market makers who wish to buy or sell stock plus recently occurred orders. Level III is for the market makers and permits them to execute orders and enter their quotes. Through continuous shaping of the new investing world, NASDAQ challenges the definition itself of a stock market and what a stock market can be.

This entry was posted in Markets and tagged . Bookmark the permalink.