Nasdaq was the world's first fully electronic stock market in 1971
The Nasdaq is the second-largest stock and securities exchange in the world, behind only the New York Stock Exchange (NYSE).
The Nasdaq is also a term that can refer to two different things:
- First, it is the National Association of Securities Dealers Automated Quotations exchange, ( The first electronic exchange that allowed investors to buy and sell stock on a computerized, speedy, and transparent system, without the need for a physical trading floor.
- The second reference is to an index. When you hear people say that the "the Nasdaq is up today," they are referring to the Nasdaq Composite Index, which, like the DJIA, is a statistical measure of a portion of the stock market.
The Nasdaq lists more than 3,100 companies and boasts the highest trade volume in the U.S. market. More than $14 trillion worth of companies trade on the Nasdaq
For stock or security to be listed on the Nasdaq electronic exchange, a company must:
- Meet certain requirements based on its finances, liquidity, and corporate governance
- Be registered with the Securities Exchange Commission (SEC)
- Have at least three market makers
- Meet other requirements based on company size and trading volume
Once an application is submitted, it may take anywhere between four and six weeks for the company's listing to be approved