The Nasdaq stock exchange is a global electronic marketplace for buying and selling securities, including stocks, derivatives, fixed income, and commodities. It operates 29 markets, one clearinghouse, and five central securities depositories in the U.S., Canada, Scandinavia, and the Baltics1.
- History: Nasdaq was founded in 1971 as the world's first electronic stock market by the National Association of Securities Dealers (NASD), which is now known as the Financial Industry Regulatory Authority (FINRA)12.
- Operations: It features a price/time priority model where all displayed limit orders are treated equally and executed in the order they were received at the same price. Non-displayed shares are executed after displayed shares in the order they were received at that price3.
- Market Segments: Nasdaq operates three tiers: the Nasdaq Global Select Market, the Nasdaq Global Market, and the Nasdaq Capital Market, with the latter being the entry point for smaller companies4.
- Listing Requirements: To list on the Nasdaq, a company must have a minimum of 1,250 publicly traded shares, a regular bid price of at least $4, and meet earnings, capitalization, and/or asset thresholds4.
- Financial Performance: Nasdaq is the second-largest major stock exchange by market cap globally, with a market cap of approximately $23.414 trillion as of February 20245.
The Nasdaq stock exchange is a technologically advanced platform that has revolutionized the way securities are bought and sold, making it a preferred choice for many companies, especially in the technology sector6.
7/15/2024 03:07am
