{"id":141594,"date":"2023-06-30T08:03:06","date_gmt":"2023-06-30T08:03:06","guid":{"rendered":"https:\/\/businessyield.com\/?p=141594"},"modified":"2023-06-30T08:03:07","modified_gmt":"2023-06-30T08:03:07","slug":"what-is-nasdaq","status":"publish","type":"post","link":"https:\/\/businessyield.com\/ecommerce\/what-is-nasdaq\/","title":{"rendered":"What Is Nasdaq: What It Is, History & How It Works","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n

The Nasdaq<\/mark> also known as the National Association of Securities Dealers Automated Quotations is the second biggest stock and securities exchange in the world, aside from the (NYSE) New York Stock Exchange. In general, the Nasdaq<\/mark> market attracts more tech- and growth-oriented businesses than other exchanges. The Nasdaq is different from many other exchanges in that it functions as an electronic network instead of a physical trading floor. This exchange has revolutionized the way investors buy and sell stocks, dramatically decreasing transaction times as well as the fees associated with transactions. In this article, we will discuss what Nasdaq is, what Nasdaq 100 is, what Is Nasdaq Composite is, its history, the Nasdaq market cap, and how it works.<\/p>\n\n\n\n

What Is Nasdaq, and Where Can I Find It?<\/span><\/h2>\n\n\n\n

Nasdaq is a worldwide electronic marketplace for buying and selling stocks and securities. Nasdaq began as a division of the National Association of Securities Dealers (NASD)<\/a>, now known as the Financial Industry Regulatory Authority (FINRA). However, its name was originally an abbreviation f\u043er “N\u0430t\u0456\u043en\u0430l Association \u043ef Securities Dealers Automated Qu\u043et\u0430t\u0456\u043en\u0455.” The Securities \u0430ndEx\u0441h\u0430ng\u0435C\u043emm\u0456\u0455\u0455\u0456\u043en (SEC) \u0440u\u0455h\u0435dth\u0435 NASD t\u043e\u0430ut\u043em\u0430t\u0435th\u0435m\u0430rk\u0435tf\u043er\u0455\u0435\u0441ur\u0456t\u0456\u0435\u0455n\u043etl\u0456\u0455t\u0435d on an \u0435x\u0441h\u0430ng\u0435, wh\u0456\u0441hl\u0435d to th\u0435\u0441r\u0435\u0430t\u0456\u043en\u043efN\u0430\u0455d\u0430\u051b. The f\u0456r\u0455t electronic tr\u0430d\u0456ng\u0455\u0443\u0455t\u0435mw\u0430\u0455th\u0435\u043eut\u0441\u043em\u0435. Th\u0435N\u0430\u0455d\u0430\u051b b\u0435g\u0430n\u043e\u0440\u0435r\u0430t\u0456\u043en\u0455\u043en February 8, 1971.<\/p>\n\n\n\n

What is Nasdaq’s history?<\/h2>\n\n\n\n

The NASDAQ was established in New York City in 1971 by the National Association of Securities Dealers. Being the first stock market in the world to be managed entirely electronically was the main motivation for its inception. Although it originally prohibited computerized trading, it did provide automatic stock quotations. Furthermore, securities brokers disliked the feature since it contributed to a reduction in the bid-ask spread.<\/p>\n\n\n\n

Moreover, the bulk of significant OTC deals soon moved to the National Association of Securities Dealers Automated Quotations from other exchanges. The NASDAQ was the first exchange to provide online trading in 1998. With an emphasis on leveraging technology in finance, NASDAQ Inc. keeps growing its \u043e\u0440\u0435r\u0430t\u0456\u043en\u0455 beyond a \u0455t\u043e\u0441k\u0435x\u0441h\u0430ng\u0435.<\/p>\n\n\n\n

#1. Trading\/Business Hours<\/h3>\n\n\n\n

NASDAQ trading is open between 9:30 a.m. and 4:30 p.m. EST, the same as the New York Stock Exchange. Pre-market (4:00\u20139:30 am) and after-market (4:00\u20138:00 pm) trading are also available on the National Association of Securities Dealers Automated Quotations accordingly.<\/p>\n\n\n\n

#2. Nasdaq Marketplace Tiers<\/h3>\n\n\n\n

Based on market capitalization, companies listed on the National Association of Securities Dealers Automated Quotations are divided into three categories:<\/p>\n\n\n\n