Tag: NASDAQ

NASDAQ, an acronym for National Association of Securities Dealers Automated Quotations, stands as a technological vanguard in the global financial landscape. Established in 1971 as the world’s first fully electronic stock exchange, it revolutionized securities trading by eliminating the need for a physical trading floor. Instead, it operates through a sophisticated computer and telecommunications network, enabling faster and more efficient transactions.

Known for its significant concentration of technology and growth-oriented companies, NASDAQ lists many of the world’s leading innovators, including giants like Apple, Microsoft, Amazon, and Tesla. This tech-heavy composition makes its primary index, the NASDAQ Composite, a key barometer for the performance of the technology sector globally.

Unlike the auction-based model of traditional exchanges, NASDAQ functions as a “dealer’s market,” where multiple “market makers” compete to facilitate trades, providing continuous liquidity. This competitive environment aims to ensure optimal pricing for buyers and sellers. Beyond equities, NASDAQ has diversified its offerings to include derivatives, fixed income, and commodities, while also providing crucial market technology and intelligence services to exchanges and financial institutions worldwide. Its legacy is one of continuous disruption, consistently pushing the boundaries of what a stock exchange can be.