NASDAQ

NASDAQ
Name	NASDAQ
Type	Stock exchange
Location	New York City, New York, U.S.
Founded	8 February 1971
Owner	Nasdaq, Inc.
Key people	Adena Friedman (CEO)
Currency	USD
Indices	NASDAQ Composite, NASDAQ-100
Website	https://www.nasdaq.com

NASDAQ. The NASDAQ Stock Market is a premier global electronic marketplace for buying and selling securities and the first exchange of its kind. Operated by Nasdaq, Inc., it is known for its high concentration of technology and growth-oriented companies, distinguishing it from traditional trading floors like the New York Stock Exchange. Since its inception, it has been a critical engine for capital formation, particularly for innovative firms in sectors like biotechnology and software.

History

The exchange began trading on February 8, 1971, conceived by the National Association of Securities Dealers (NASD) to automate the over-the-counter securities market. A landmark moment occurred in 1985 when it facilitated the first initial public offering for Microsoft, heralding its future role with tech firms. The 1987 stock market crash tested its electronic systems, leading to subsequent upgrades. It formally separated from the NASD in 2000 and became a for-profit, publicly-traded company under Nasdaq, Inc. in 2002. Major acquisitions, such as the Boston Stock Exchange and the Philadelphia Stock Exchange, expanded its footprint, and it gained status as a national securities exchange in 2006.

Operations and trading

Unlike traditional auction markets, it operates as a dealer's market, where multiple market makers compete via computer networks to provide buy and sell quotes. The core of its operations is the NASDAQ Market Center, an electronic order book that executes trades automatically. It utilizes sophisticated trading technology like the INET platform to ensure high-speed, high-volume processing. The exchange supports various order types, including market orders and limit orders, and provides after-hours trading sessions. Its liquidity is bolstered by participants such as Citadel Securities and Virtu Financial.

Market structure and indices

The marketplace is tiered into three listing segments: the NASDAQ Global Select Market, the NASDAQ Global Market, and the NASDAQ Capital Market, each with specific financial and corporate governance requirements. Its premier benchmark, the NASDAQ Composite, includes all common stocks and similar securities listed, heavily weighted toward the technology sector. The NASDAQ-100, a modified capitalization-weighted index, tracks the largest non-financial companies and is the basis for the popular Invesco QQQ exchange-traded fund. Other specialized indices include the NASDAQ Biotechnology Index and the NASDAQ Financial-100.

Listed companies

It hosts many of the world's most prominent technology corporations, including Apple Inc., Amazon, Alphabet, and Meta Platforms. Beyond Silicon Valley, its roster features major firms from diverse sectors, such as Starbucks from consumer discretionary, Amgen from biotechnology, and Costco from consumer staples. The exchange has been a favored destination for initial public offerings for innovative companies, with landmark listings like Intel, Cisco Systems, and more recently Rivian. Stringent listing requirements are maintained across its tiered market structure.

Technology and innovation

As a pioneer in electronic trading, its infrastructure is defined by advanced computer networks and low-latency systems. It continuously invests in financial technology, including blockchain solutions and artificial intelligence for market surveillance. The exchange provides technology and transaction processing services to other financial institutions globally, including the OMX exchanges in Nordic and Baltic regions. Its data analytics products offer insights into market microstructure and trading volume.

Regulation and oversight

As a self-regulatory organization, it enforces rules among its members and listed companies under the ultimate authority of the U.S. Securities and Exchange Commission (SEC). Its regulatory unit, FINRA, oversees broker-dealer conduct and ensures compliance with federal securities laws like the Securities Exchange Act of 1934. The exchange works closely with the Commodity Futures Trading Commission on related derivatives market matters and adheres to standards set by the Public Company Accounting Oversight Board.

Category:Stock exchanges in the United States Category:Companies based in New York City Category:1971 establishments in the United States