What is NASDAQ?
It is an acronym for National Association of Securities Dealers Automated Quotation system. This is an American stock exchange where investors and traders can buy or sell stock. It has more than 3000 stocks. This stock exchange has the most reputable industries and companies, this include Oracle, google, Intel, Microsoft, amazon and many other. It is the first electronic exchange and was founded in 1971. Its headquarter is in New York.
What is NASDAQ composite index?
This is what measures the market portion. When you hear people talk about NASDAQ is high, it means the figures that represent NASDAQ composite index is high. This is what most financial journalist will find talk about or analyzing.
The history of NASDAQ
It has an interesting history, some of you heard of NASDAQ in 2006, yet you are surprised it started in 1971. Well it started at 1971 February but not as NASDAQ but as NASD an acronym of National Association of Security Dealers. All through the years it has taken blows but it was strong. In 2006 it separated from NASD. In 2007 it got the biggest opportunity where it merged with Scandinavian exchange group OMX and they changed their name to be Nasdaq OMX, this merging made them be the largest company in the stock exchange and it powered some of the securities transaction in the world. The electronic change was meant to replace the specialist system which was prevalent way before the electronic exchange. Its success has made it the second largest stock exchange in the world and the largest electronic exchange in the world.
How is NASDAQ regulated?
As stated earlier it has over 3000 stock. They deal with many types of company including finance, technology, transportation, energy capital goods as well as many other. But many people know it for its technology stock. There are rules and regulation one must obey as NASDAQ as well as the client in being listed in the NASDAQ national market. This include: The outstanding stock value should be more than 1.1 million dollars. Price of the stock should 24/7 be more than 1 dollar each. If this financial requirement is a bit higher than expected, then you could consider being listed on the NASDAQ small Caps Market. It is much friendlier to small businesses. The listing fee is affordable and is the lowest in the stock exchange world. Its maximum is usually less than 150, 000 dollars. Its trading volume is a bit high of more than 1.8 billion trade each day. Learn more about the U.S. Financial Regulatory Policy for Banking and Securities Markets.
How to start trading stocks in NASDAQ?
It has NASDAQ physical market site in Times Square in Manhattan. Outside it has a huge electronic that displays the current information on the companies’ stock in terms of money. It is 24/7 displaying. The trade usually take place from Monday to Friday from 9: 30 a.m. and ends at 4 p.m. On weekend as well as holiday no trading take place. There is no trading directly from the buyer as well as seller, in between there is usually market maker. You can trade on NASDAQ through the available automated trading systems.