Stock Market (/ˈnæzˌdæk/ ( listen)) is an
American stock exchange. It is the second-largest exchange in the
world by market capitalization, behind only the New York Stock
Exchange located in the same city. The exchange platform is owned
by Nasdaq, Inc., which also owns the
Nasdaq Nordic (formerly known
as OMX) and Nasdaq Baltic stock market network and several other US
stock and options exchanges.
2 Quote availability
3 Trading schedule
4 Market tiers
5 Average annualized growth rate
6 See also
8 External links
When it was founded,
NASDAQ stood for the acronym of "National
Association of Securities Dealers Automated Quotations". Nasdaq was
founded in 1971 by the National Association of Securities Dealers
(NASD), which divested itself of Nasdaq in a series of sales in
2000 and 2001. The Nasdaq
Stock Market is owned and operated by
Nasdaq, Inc., the stock of which was listed on its own securities
exchange on July 2, 2002, under the ticker symbol NDAQ.
When the Nasdaq
Stock Market began trading on February 8, 1971, it was
the world's first electronic stock market. At first, it was merely
a quotation system and did not provide a way to perform electronic
trades.[not in citation given] The Nasdaq
Stock Market helped lower
the spread (the difference between the bid price and the ask price of
the stock) but was unpopular among brokerages which made much of their
money on the spread.
Stock Market eventually assumed the majority of major
trades that had been executed by the over-the-counter (OTC) system of
trading, although there are still many securities traded in this
fashion. As late as 1987, the Nasdaq exchange was still commonly
referred to as "OTC" in media and also in the monthly
(stock guides and procedures) issued by Standard & Poor's
Over the years, the
Stock Market became more of a stock market
by adding trade and volume reporting and automated trading systems. It
was also the first stock market in the
United States to start trading
NASDAQ -traded companies and closing with the
declaration that the
Stock Market is "the stock market for the
next hundred years". The
Stock Market attracted new growth
companies such as Microsoft, Apple, Cisco, Oracle and Dell and helped
modernize the IPO.
Its main index is the
NASDAQ Composite, which has been published since
its inception. However, its exchange-traded fund tracks the large-cap
NASDAQ-100 index, which was introduced in 1985 alongside the NASDAQ
100 Financial Index which tracks the largest 100 companies in terms of
In 1992, the Nasdaq
Stock Market joined with the London
to form the first intercontinental linkage of securities markets.
The National Association of Securities Dealers spun off the Nasdaq
Stock Market in 2000 to form a publicly traded company.
NASDAQ Composite index spiked in the late 1990s and then fell
sharply as a result of the dot-com bubble.
On March 10, 2000, the
NASDAQ Composite peaked at 5,132.52, but fell
to 3227 by April 17, and in the following 30 months fell 78% from
In 2006, the status of the Nasdaq
Stock Market was changed from a
stock market to a licensed national securities exchange.
In 2007, Nasdaq merged with OMX, a leading exchange operator in the
Nordic countries, expanded its global footprint, and changed its name
To qualify for listing on the exchange, a company must be registered
United States Securities and Exchange Commission (SEC), must
have at least three market makers (financial firms that act as brokers
or dealers for specific securities) and must meet minimum requirements
for assets, capital, public shares, and shareholders.
In February 2011, in the wake of an announced merger of NYSE Euronext
with Deutsche Börse, speculation developed that
Intercontinental Exchange (ICE) could mount a counter-bid of their own
OMX could be[when?] looking to acquire the American
exchange's cash equities business, ICE the derivatives business. At
the time, "NYSE Euronext’s market value was $9.75 billion.
Nasdaq was valued at $5.78 billion, while ICE was valued at
$9.45 billion." Late in the month, Nasdaq was reported to be
considering asking either ICE or the
Chicago Mercantile Exchange
Chicago Mercantile Exchange to
join in what would probably have to be, if it proceeded, an
$11–12 billion counterbid.
The European Association of Securities Dealers Automatic Quotation
System (EASDAQ) was founded as a European equivalent to the Nasdaq
Stock Market. It was purchased by
NASDAQ in 2001 and became NASDAQ
Europe. Operations were shut down, however, as a result of the burst
of the dot-com bubble. In 2007,
NASDAQ Europe was revived as Equiduct,
and is currently[when?] operating under Börse Berlin.
On June 18, 2012, Nasdaq
OMX became a founding member of the United
Stock Exchanges initiative on the eve of the
United Nations Conference on Sustainable Development
United Nations Conference on Sustainable Development (Rio+20).
In November 2016, Nasdaq Chief Operating Officer
Adena Friedman was
promoted to the role of CEO, becoming the first woman to run a major
exchange in the U.S. In 2016, Nasdaq earned $272 million in
Nasdaq quotes are available at three levels:
Level 1 shows the highest bid and lowest ask—inside quote.
Level 2 shows all public quotes of market makers together with
information of market dealers wishing to buy or sell stock and
recently executed orders.
Level 3 is used by the market makers and allows them to enter their
quotes and execute orders.
Stock Market sessions eastern time are:
4:00 am to 9:30 am premarket session
9:30 am to 4:00 pm normal trading session
4:00 pm to 8:00 pm postmarket session
Stock Market has three different market tiers:
Capital Market (small cap) is an equity market for companies that have
relatively small levels of market capitalization. Listing requirements
for such "small cap" companies are less stringent than for other
Nasdaq markets that list larger companies with significantly higher
Global Market (mid cap) is made up of stocks that represent the Nasdaq
Global Market. The Global Market consists of 1,450 stocks that meet
Nasdaq's strict financial and liquidity requirements, and corporate
governance standards. The Global Market is less exclusive than the
Global Select Market.
Global Select Market (NASDAQ-GS large cap) is a market
capitalization-weighted index made up of US-based and international
stocks that represent the Global Select Market Composite. The Global
Select Market consists of 1,200 stocks that meet Nasdaq's strict
financial and liquidity requirements and corporate governance
standards. The Global Select Market is more exclusive than the Global
Market. Every October, the Nasdaq Listing Qualifications Department
reviews the Global Market Composite to determine if any of its stocks
have become eligible for listing on the Global Select Market.
Average annualized growth rate
As of June 2015, the Nasdaq
Stock Market had an average annualized
growth rate of 9.24% since its opening in February 1971. Since the end
of the recession in June 2009 however, it has increased by 18.29% per
New York City
New York City portal
United States corporate law
Advanced Computerized Execution System
Economy of New York City
List of stock exchanges
List of stock exchanges in the Americas
List of stock exchange mergers in the Americas
^ "Nasdaq Companies". Archived from the original on February 13, 2011.
Retrieved March 22, 2016.
^ "Monthly Reports". World-Exchanges.org. World Federation of
Exchanges. Archived from the original on August 17, 2014. Retrieved
June 3, 2015.
^ Nasdaq. "Nasdaq – Business Solutions & Services". Archived
from the original on October 20, 2016. Retrieved October 23,
^ Frequently Asked Questions. NASDAQ.com. NASDAQ, n.d. Web. December
23, 2001. Archived February 13, 2011, at WebCite
^ a b Terrell, Ellen. "History of the American and Nasdaq Stock
Exchanges". LOC.gov. Library of Congress Business Reference Services.
Archived from the original on April 14, 2013. Retrieved April 27,
^ "Nasdaq.com Frequently Asked Questions". Retrieved October 23,
^ Gilpin, Kenneth N. (July 3, 1987). "COMPANY NEWS; AN ERRATIC QUARTER
FOR STOCK MARKETS". The New York Times. ISSN 0362-4331. Archived
from the original on August 1, 2017. Retrieved February 1, 2017.
^ Odekon, Mehmet (March 17, 2015). Booms and Busts: An Encyclopedia of
Economic History from the First
Stock Market Crash of 1792 to the
Current Global Economic Crisis: An Encyclopedia of Economic History
from the First
Stock Market Crash of 1792 to the Current Global
Economic Crisis. Routledge. ISBN 9781317475750. Archived from the
original on August 3, 2017.
NASDAQ Composite daily index". Archived from the original on
November 22, 2010.
^ Glassman, James K. (February 11, 2015). "3 Lessons for Investors
From the Tech Bubble". Kiplinger's Personal Finance. Archived from the
original on April 15, 2017.
^ Walsh, Michelle. "Nasdaq
Stock Market Becomes A National Securities
Exchange; Changes Market Designations". Archived from the original on
December 17, 2013.
^ Lucchetti, Aaron; MacDonald, Alistair (May 26, 2007). "Nasdaq Lands
OMX for $3.7 Billion; Are More Merger Deals on the Way?". Wall Street
Journal. ISSN 0099-9660. Archived from the original on July 31,
2017. Retrieved July 21, 2017.
^ De la Merced, Michael J., "Nasdaq and ICE Hold Talks Over Potential
N.Y.S.E. Bid" Archived January 20, 2012, at the Wayback Machine., The
New York Times Dealbook, February 18, 2011, 12:46 pm. Retrieved
February 18, 2011.
^ Fraser, Michelle E., "Nasdaq May Ask CME or ICE for
Help in NYSE
Counterbid, WSJ Says" Archived July 29, 2014, at the Wayback Machine.,
Bloomberg, February 26, 2011 9:30 AM ET. Retrieved March 1, 2011.
^ "Easdaq Makes A Comeback As Equiduct". Archived from the original on
February 13, 2011.
Stock Exchanges Initiative: Exchanges listing over
4,600 companies commit to promoting sustainability". Reuters.com.
Reuters. Archived from the original on May 13, 2014. Retrieved May 13,
^ "Nasdaq's New CEO Attributes Her Success to an 'Eclectic' Career
Path". Fortune. November 15, 2016. Archived from the original on
November 17, 2016. Retrieved November 17, 2016.
^ Osipovich, Alexander (October 26, 2017). "Startup Exchange Cleared
to Take on NYSE, Nasdaq for
Stock Listings". Wall Street Journal. New
York City, United States. Archived from the original on October 26,
2017. Retrieved October 26, 2017.
^ "Order Book, Level 2 Market Data, and Depth of Market". Daytrading.
About.com. Archived from the original on February 13, 2011.
^ "Nasdaq Level III Quote". Archived from the original on April 13,
^ "Nasdaq Trading Schedule". Nasdaq.com. Archived from the original on
April 17, 2014. Retrieved April 20, 2014.
^ "Definition of 'Nasdaq SmallCap Market', now known as Nasdaq Capital
Market". Investopedia.com. Archived from the original on August 4,
2013. Retrieved August 25, 2013.
^ "Definition of 'Nasdaq Global Market Composite'". Investopedia.com.
Archived from the original on September 17, 2013. Retrieved August 25,
^ "Definition of 'Nasdaq Global Select Market Composite'".
Investopedia.com. Archived from the original on October 4, 2013.
Retrieved August 25, 2013.
^ Pinto, Jerald E.; Henry, Elaine; Robinson, Thomas R.; Stowe, John D.
(2010). Equity Asset Valuation. CFA Institute Investment Series. 27 (2
ed.). John Wiley & Sons. p. 6. ISBN 9780470579657.
Archived from the original on May 10, 2013. Retrieved March 4, 2013.
[...] NASDAQ-GS stands for 'Nasdaq Global Select Market,' [...]
^ "Measuring Worth – Measures of worth, inflation rates, saving
calculator, relative value, worth of a dollar, worth of a pound,
purchasing power, gold prices, GDP, history of wages, average wage".
measuringworth.com. Archived from the original on October 4, 2015.
Retrieved October 2, 2015.
Wikimedia Commons has media related to NASDAQ.
YouTube SpotlightOfficial website
Operator of the
OMX stock exchange systems
NASDAQ Private Market
Types of markets
Types of stocks
Electronic communication network
List of stock exchanges
Multilateral trading facility
Arbitrage pricing theory
Capital asset pricing model
Capital market line
Dividend discount model
Earnings per share
Net asset value
Security characteristic line
Security market line
Buy and hold
Dollar cost averaging
Modern portfolio theory
Post-modern portfolio theory
Random walk hypothesis
Initial public offering
Returns-based style analysis
Reverse stock split
Stock market index
United States stock market indices
Dow Jones Industrial Average
Dow Jones Industrial Average (30 large stocks; popular indicator)
NYSE Composite Index (all companies on the NYSE)
Nasdaq Composite Index (all companies on the NASDAQ; technology-heavy)
NASDAQ-100 Index (100 large
NASDAQ non-financial stocks)
S&P 500 Index (500 large companies; general market analysis)
Russell 2000 Index
Russell 2000 Index (small-cap stocks)
Wilshire 5000 Index (total