What is NASDAQ and how is it different from other stocks?
- Joe DLv 61 decade agoFavorite Answer
NASDAQ (originally an acronym for National Association of Securities Dealers Automated Quotations) is an American electronic stock exchange. It was founded in 1971 by the National Association of Securities Dealers (NASD), who divested it in a series of sales in 2000 and 2001. It is owned and operated by The Nasdaq Stock Market, Inc. (NASDAQ: NDAQ) which was listed on its own stock exchange in 2002, under NDAQ. NASDAQ is the largest electronic screen-based equity securities market in the United States. With approximately 3,300 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. The current chief executive officer is Robert Greifeld.
NASDAQ allows multiple market participants to trade through its electronic communications networks (ECNs) structure, increasing competition. The Small Order Execution System (SOES) is another NASDAQ feature, introduced in 1987, to ensure that in 'turbulent' market conditions small market orders are not forgotten but are automatically processed. With approximately 3,200 companies, it lists more companies and, on average, trades more shares per day than any other stock exchange in the world. It is home to companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks.Source(s): http://en.wikipedia.org/wiki/NASDAQ
- 1 decade ago
The NASDAQ is an entirely electronic exchange.
Most of the other stock exchanges in the U.S are a mix of open outcry (you know, the guys yelling and waving their hands) and electronic trading. The largest exchange is the NYSE.
The listing requirements for the NASDAQ are less rigorous than for the NASDAQ, so start ups and smaller companies are listed there.
In the past, once a company became large and established, it moved from the NASDAQ to the NYSE (also know as the big board). That is no longer the case.
Some large companies such as Microsoft and Intel are dual listed, and are traded on both the NASDAQ and other exchanges.
- Anonymous3 years ago
1Source(s): Penny Stocks Trading http://teres.info/TheTradingCode
- robertspraguejrLv 41 decade ago
NASDAQ, the National Association of Securities Dealers' Automated Quotations, lists stocks that are not traded in the other exchanges, such as the New York Stock Exchange, "NYSE," The American Stock Exchange, "ASE," or the regional exchanges. The stocks on NASDAQ tend to have smaller market capitalizations than those on NYSE, and they also tend to me newer. They are higher risk and more volatile.
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- The AdvocateLv 41 decade ago
most of the tech stocks are on nasdaq, newer issues. there is a little difference in how they are traded and the spread, a little less capital to get on this board
- 1 decade ago
simple version .............. 1) mostly tech stocks
2) much more volatility in daily stock movements, hence better for day trading.