Nasdaq Stock Market - The Basics
On February 8, 1971, the NASDAQ (National Association of Securities Dealers Automated Quotations) stock market was established. It is entirely owned and operated by the company The Nasdaq Stock Market, Inc. Today, it is the largest electronically-based online trading market for equities in America.
In 1971, NASDAQ became the world’s first exclusively electronic trading market for equities, and it now serves millions of people all over the world. NASDAQ has become the United States’ most rapidly growing stock market, and the market with the most listings from outside the US. It now leads all American markets in trading volume and in companies listed. The most frequently mentioned index, the NASDAQ Composite, has been published each day for 36 years. The large-cap NASDAQ 100 Index was introduced in 1985, as was the Financial Index covering stocks in that sector.
Dating from the 1st March 07 almost 5100 companies which include small and growing companies and a lot of large corporations as well which became household names, sell their securities using this electronic marketplace. About 2 out of 7 shared traded on the American financial market occurs through this system. For Tape A or NYSE listed security, it is about the 14-15 % of all shared trades. For Tape C ones, it is about 45 to 98 % of the whole trading quote.
NASDAQ Stock Market has a sliding fee system based on how much trading volume the market participant executes on the NASDAQ system. Higher the volume executed on the system, lower is the liquidity removal fees and more favorable is the added-liquidity rebates.
In an online trading market system, there is huge competition between ‘Market Makers’ for the best buying and selling prices. Companies also consider these market makers as lucrative market since they are always ready to immediately invest capital to their registered stocks. Market makers also help immediate and continuous trading in a company’s stock. Buyers and sellers want to trade as frequent as possible and investors want to hold securities as much as possible, since they realize those stocks are readily saleable.
Three levels of quotations are available from NASDAQ. The first tier, Level I, shows the inside quotes- the highest bid and lowest offer for each company’s shares. Level II quotations show all public quotes from market makers, information about which market makers are buying or selling, and orders recently completed. The most throough Level III quotes are visible to the market makers themselves, letting them enter and execute orders. These levels help NASDAQ in changing the idea of a stock market and the way in which buyers and sellers are brought together.
The National Association of Securities Dealers Automated Quotations system (NASDAQ) is an American market of stocks established in 1971. It is operated and owned by Nasdaq Stock Market inc. and is the wider screen based electronic online trading of equity security in the USA. In 1971, NASDAQ became the world’s first exclusively electronic trading market for equities, and now serves millions of people. The Stock Market named NASDAQ uses a sliding fee method based on the quantity of trading the market parts enact on the NASDAQ systems. NASDAQ’s continued innovation opens new possibilities for what a stock market is and what it can become.
- Mark Crisp
