Nasdaq

The Nasdaq Stock Market, once known as the National Association of Securities Dealers Automated Quotations, is a big place where people buy and sell pieces of companies, called stocks. It is the second biggest stock market in the world by the total value of all the companies listed there, and it was the first stock market that works completely with computers instead of people trading papers. It is based in Manhattan, which is part of New York City.

This stock market is owned by a company called Nasdaq, Inc.. That same company also owns stock markets in other places, like the Nasdaq Nordic and some markets in the United States for special types of trading called options. Many technology companies, like those that make computers and software, choose to list their stocks on Nasdaq. It also includes companies from other countries, especially from China and Israel.

By the end of 2024, over four thousand companies had their stocks listed on Nasdaq. These companies are split into three groups: the Nasdaq Global Select Market, the Nasdaq Global Market, and the Nasdaq Capital Market. Several important groups of stocks, such as the Nasdaq Composite, the Nasdaq-100, and the Nasdaq Financial-100, are made up only of companies listed on the Nasdaq.

History

Nasdaq, Inc. was started in 1971 by the National Association of Securities Dealers, now called the Financial Industry Regulatory Authority. Unlike other stock markets, Nasdaq did not have a room where people traded in person. "Nasdaq" is short for "National Association of Securities Dealers Automated Quotations". On February 8, 1971, Nasdaq began working as the world's first fully electronic stock market. At first, it showed stock prices but did not let people trade right away. Intel Corporation was one of the first big companies to list its shares on Nasdaq. Other big companies like Comcast and Applied Materials also joined in the early years.

Since it started, many big companies that used to trade in other ways started using Nasdaq. By 1981, Nasdaq handled 37% of all stock trades in the U.S. By 1991, that number went up to 46%. In 1992, Nasdaq worked with the London Stock Exchange to connect markets across oceans.

In 1998, Nasdaq became the first stock market in the U.S. to let people trade stocks online. This helped it attract many companies, especially during a time when many new internet businesses were starting.

In 2002, Nasdaq started selling shares of its own company. In 2007, it mixed together with a group of markets in Nordic countries.

In 2016, Adena Friedman became the first woman to lead a major U.S. stock market as its top leader.

In 2023, the Nasdaq-100 index—a group of 100 big companies on Nasdaq—grew very fast, mostly because of technology companies doing well.

In March 2026, the U.S. Securities and Exchange Commission allowed Nasdaq to let some stocks be traded using a new technology called blockchain.

Quote availability

A quote is the price of a stock on an exchange. It includes the price buyers want to pay (bids) and the price sellers want to accept (offers). Nasdaq has three levels of quotes:

• Level 1 shows the highest price a buyer will pay and the lowest price a seller will accept.
• Level 2 shows all public quotes from market makers and information about buyers and sellers and recent trades.
• Level 3 is used by market makers to enter their prices and complete trades.

Trading schedule

The Nasdaq Stock Market has different times for trading. From 4:00 a.m. to 9:30 a.m. Eastern Time, there is a special early trading session. The normal trading hours are from 9:30 a.m. to 4:00 p.m. Eastern Time. After that, from 4:00 p.m. to 8:00 p.m., there is another special late trading session. Each year, the Nasdaq Stock Market has around 253 days when people can trade.

Market tiers

The Nasdaq Stock Market has three different groups for companies listed on it. These groups are called tiers.

The Capital Market (NASDAQ-CM small cap) is for companies that are smaller and have less value. These companies have simpler rules to join this market compared to larger ones.

The Global Market (NASDAQ-GM mid cap) includes stocks that follow strict rules for money and how easy it is to buy and sell them. There are 1,450 stocks in this group.

The Global Select Market (NASDAQ-GS large cap) is for the biggest companies. It includes 1,200 stocks that also follow strict rules. Every October, Nasdaq checks to see if any stocks from the Global Market can join the Global Select Market.

Difference between NYSE and Nasdaq

Nasdaq is the second largest stock exchange in the United States. It has some important differences from the NYSE.

• Trading Volume. Nasdaq has more trading activity than the NYSE, with about 1.8 billion trades each day.
• Exchange systems. Before the COVID-19 pandemic, the NYSE used both electronic trading and a special room where people worked together to help with trading. Nasdaq has always been completely electronic.
• Market structure. The NYSE started a long time ago in 1792, when brokers met in person to trade. Nasdaq started in 1971 as the first electronic system for trading securities without a special room. It later added more electronic tools for trading.
• Listing fees. The cost for a company to join Nasdaq depends on the type of market, ranging from about $53,000 to $193,000.
• Sectors. People often think of the NYSE as a place for older, well-known companies. Nasdaq is more popular with newer companies, especially those focused on technology and new ideas.