Nasdaq

Type Stock exchange

Location One Liberty Plaza

165 Broadway, New

York City, New

York, U.S.

Founded February 4, 1971; 47

years ago

Owner Nasdaq, Inc.

Currency United States

Dollar

No. of listings 3,433 (June 2018)[1]

 Market cap $10 trillion

Website business.nasdaq.com

The Nasdaq Stock Market (/ˈnæzˌdæk/ ( listen), also

known as Nasdaq) is an American stock exchange. It is

the second-largest stock exchange in the world

by market capitalization, behind only the New York

Stock Exchange located in the same city.[2] The

exchange platform is owned by Nasdaq, Inc.,[3] which

also owns the Nasdaq Nordic (formerly known as

OMX) and Nasdaq Baltic stock market network and

several U.S. stock and options exchanges

Contents

 1History

o 1.11971–1999

o 1.22000–present
 2Quote availability

 3Trading schedule

 4Market tiers

 5Average annualized growth rate

 6See also

 7References

 8External links

History[edit]

1971–1999[edit]

"Nasdaq" was initially an acronym for the National

Association of Securities Dealers Automated

Quotations.[4] It was founded in 1971 by the National

Association of Securities

Dealers (NASD),[5] 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.

Former logo used from 1971 to 2014

The Nasdaq Stock Market began trading on February

8, 1971. It was the world's first electronic stock

market.[5] At first, it was merely a “quotation system”

and did not provide a way to perform electronic

trades.[6][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.

The NASDAQ Stock Market eventually assumed the

majority of major trades that had been executed by

the over-the-counter (OTC) system of trading, but

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

reports[7] and also in the monthly Stock Guides

(stock guides and procedures) issued by Standard &

Poor's Corporation.[citation needed]

Over the years, the Nasdaq 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 trade

online, highlighting Nasdaq-traded companies and

closing with the declaration that the Nasdaq Stock

Market is "the stock market for the next hundred

years". The Nasdaq Stock Market attracted new

growth companies, including Microsoft, Apple,

Cisco, Oracle and Dell, and it 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 Financial-100 Index, which tracks the

largest 100 companies in terms of market

capitalization.

In 1992, the Nasdaq Stock Market joined with

the London Stock Exchange to form the first

intercontinental linkage of securities markets.[8] The

National Association of Securities Dealers spun off

the Nasdaq Stock Market in 2000 to form a publicly

traded company.
The NASDAQ Composite index spiked in the late 1990s

and then fell sharply as a result of the dot-com

bubble.

2000–present[edit]

Studio
On March 10, 2000, the NASDAQ Composite peaked

at 5,132.52, but fell to 3,227 by April 17,[9] and in the

following 30 months fell 78% from its peak.[10]

In 2006, the status of the Nasdaq Stock Market was

changed from a stock market to a licensed national

securities exchange.[11]

In 2007, Nasdaq merged with OMX, a leading

exchange operator in the Nordic countries, expanded

its global footprint, and changed its name to the

NASDAQ OMX Group.[12]

To qualify for listing on the exchange, a company

must be registered with the 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 NASDAQ OMX

and Intercontinental Exchange (ICE) could mount a

counter-bid of their own for NYSE. NASDAQ 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."[13] Late in the month, Nasdaq was

reported to be considering asking either ICE or

the Chicago Mercantile Exchange to join in what

would probably have to be, if it proceeded, an $11–

12 billion counterbid.[14]

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.[15]

On June 18, 2012, Nasdaq OMX became a founding

member of the United Nations Sustainable Stock

Exchanges initiative on the eve of the United Nations

Conference on Sustainable Development (Rio+20).[16]

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.[17] In 2016, Nasdaq earned $272

million in listings-related revenues.[18]

In October 2018, the SEC ruled that the NYSE and

Nasdaq did not justify the continued price increases

when selling market data.[19][20][21]

Quote availability[edit]

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.[22]

 Level 3 is used by the market makers and allows

them to enter their quotes and execute orders.[23]

Trading schedule[edit]

The Nasdaq 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[24]

The Nasdaq Stock Market averages about

253 trading days per year.

Market tiers[edit]

The Nasdaq 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 market

capitalization.[25]

 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.[26]

 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.[27][28]

Average annualized growth rate[edit]

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 year.[29]

See also[edit]

 New York City portal

Wikimedia

Commons

has media

related

to NASDAQ.

 ACT (NASDAQ)

 Advanced Computerized Execution System

 Directors Desk

 Economy of New York City

 List of stock exchange mergers in the Americas

 List of stock exchanges

 List of stock exchanges in the Americas

 NASDAQ futures

 Nasdaq, Inc.

 NASDAQ-100

 NASDAQ Financial-100

 United States corporate law

References[edit]

1. ^ "Nasdaq Companies". Archived from the

original on February 13, 2011.

Retrieved December 1, 2018.

2. ^ "Monthly Reports". World-

Exchanges.org. World Federation of

Exchanges. Archived from the original on

August 17, 2014. Retrieved June 3, 2015.

3. ^ "Nasdaq – Business Solutions &

Services". Business.nasdaq.com. Archived from

the original on October 20, 2016.

Retrieved October 23, 2016.

4. ^ Frequently Asked Questions. NASDAQ.com.

NASDAQ, n.d. Web. December 23,

2001.Archived February 13, 2011, at WebCite

5. ^ Jump up to:a b Terrell, Ellen. "History of the

American and Nasdaq Stock

Exchanges". LOC.gov. Library of Congress

Business Reference Services. Archived from the

original on April 14, 2013. Retrieved April

27, 2013.

6. ^ "Nasdaq.com Frequently Asked

Questions". Nasdaq.com. Retrieved October

23, 2016.

7. ^ Gilpin, Kenneth N. (July 3, 1987). "Company

News: An Erratic Quarter for Stock

Markets". The New York Times. ISSN 0362-

4331. Archived from the original on August 1,

2017. Retrieved February 1, 2017.

8. ^ Odekon, Mehmet (March 17, 2015). Booms and

Busts: An Encyclopedia of Economic History

from the First Stock Market Crash of 1792 to

the Current Global Economic Crisis: An

Encyclopedia of Economic History from the

First Stock Market Crash of 1792 to the

Current Global Economic Crisis.

Routledge. ISBN 9781317475750. Archived fro

m the original on August 3, 2017.

9. ^ "NASDAQ Composite daily

index". Archived from the original on November

22, 2010.

10. ^ Glassman, James K. (February 11, 2015). "3

Lessons for Investors From the Tech

Bubble". Kiplinger's Personal

Finance. Archived from the original on April 15,

2017.
11. ^ Walsh, Michelle. "Nasdaq Stock Market

Becomes A National Securities Exchange;

Changes Market Designations". Archived from

the original on December 17, 2013.

12. ^ Lucchetti, Aaron; MacDonald, Alistair (May

26, 2007). "Nasdaq Lands OMX for $3.7 Billion;

Are More Merger Deals on the Way?". Wall

Street Journal. ISSN 0099-9660. Archived from

the original on July 31, 2017. Retrieved July

21, 2017.

13. ^ De la Merced, Michael J., "Nasdaq and ICE

Hold Talks Over Potential N.Y.S.E.

Bid"Archived January 20, 2012, at the Wayback

Machine, The New York Times Dealbook, February

18, 2011, 12:46 pm. Retrieved February 18, 2011.

14. ^ Fraser, Michelle E., "Nasdaq May Ask CME

or ICE for Help in NYSE Counterbid, WSJ

Says" Archived July 29, 2014, at the Wayback

 Machine, Bloomberg, February 26, 2011 9:30 AM

ET. Retrieved March 1, 2011.

15. ^ "Easdaq Makes A Comeback As

Equiduct". Archived from the original on

February 13, 2011.

16. ^ "Sustainable Stock Exchanges Initiative:

Exchanges listing over 4,600 companies commit

to promoting

sustainability". Reuters.com. Reuters. Archived

from the original on May 13, 2014. Retrieved May

13, 2014.

17. ^ "Nasdaq's New CEO Attributes Her

Success to an 'Eclectic' Career Path". Fortune.

November 15, 2016. Archived from the original

on November 17, 2016. Retrieved November

17, 2016.

18. ^ Osipovich, Alexander (October 26,

2017). "Startup Exchange Cleared to Take on

 NYSE, Nasdaq for Stock Listings". Wall Street

Journal. New York City, United

States. Archivedfrom the original on October

26, 2017. Retrieved October 26, 2017.

19. ^ Alexander Osipovich; Dave Michaels;

Gretchen Morgenson. "SEC Ruling Takes Aim at

Stock-Exchange Profits". Wall Street Journal.

Retrieved 18 October 2018.

20. ^ "SEC rules NYSE and Nasdaq did not

justify data fee increases". Financial Times.

Retrieved 18 October 2018.

21. ^ Michaels, Dave (2018-10-19). "NYSE, Nasdaq

Take It on the Chin in Washington". Wall Street

Journal. ISSN 0099-9660. Retrieved 2018-10-19.

22. ^ "Order Book, Level 2 Market Data, and

Depth of Market". Daytrading.

About.com. Archived from the original on

February 13, 2011.

23. ^ "Nasdaq Level III Quote". Archived from the

original on April 13, 2014.

24. ^ "Nasdaq Trading

Schedule". Nasdaq.com. Archived from the

original on April 17, 2014. Retrieved April

20, 2014.

25. ^ "Definition of 'Nasdaq SmallCap Market',

now known as Nasdaq Capital

Market". Investopedia.com. Archived from the

original on August 4, 2013. Retrieved August

25,2013.

26. ^ "Definition of 'Nasdaq Global Market

Composite'". Investopedia.com. Archived from

the original on September 17, 2013.

Retrieved August 25, 2013.

27. ^ "Definition of 'Nasdaq Global Select

Market

Composite'". Investopedia.com. Archived from

 the original on October 4, 2013.

Retrieved August 25, 2013.

28. ^ Pinto, Jerald E.; Henry, Elaine; Robinson,

Thomas R.; Stowe, John D. (2010). Equity Asset

Valuation. CFA Institute Investment Series. 27 (2

ed.). John Wiley & Sons.

p. 6. ISBN 9780470579657. Archived from the

original on May 10, 2013. Retrieved March

4,2013. [...] NASDAQ-GS stands for 'Nasdaq

Global Select Market,' [...]

29. ^ "Measuring Worth – Measures of worth,

inflation rates, saving calculator, relative

value, worth of a dollar, worth of a pound,

purchasing power, gold prices, GDP, history of

wages, average wage".

measuringworth.com. Archived from the original

on October 4, 2015. Retrieved October 2, 2015.