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Nasdaq

Definition

The Nasdaq Stock Market 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 and Nasdaq Baltic stock market network and several U.S. stock and options exchanges.

What is the 'Nasdaq'

A global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks. Nasdaq was created by the National Association of Securities Dealers (NASD) to enable investors to trade securities on a computerized, speedy and transparent system, and commenced operations on February 8, 1971. The term “Nasdaq” is also used to refer to the Nasdaq Composite, an index of more than 3,000 stocks listed on the Nasdaq exchange that includes the world’s foremost technology and biotech giants such as Apple, Google, Microsoft, Oracle, Amazon, Intel and Amgen.
 

Explaining 'Nasdaq'

Nasdaq officially separated from the NASD and began to operate as a national securities exchange in 2006. In 2007, it combined with the Scandinavian exchange group OMX to become the Nasdaq OMX group, which is the largest exchange company globally, powering 1 in 10 of the world’s securities transactions. Headquartered in New York, Nasdaq OMX operates 26 markets – primarily equities, and also including options, fixed income, derivatives and commodities – as well as three clearinghouses and five central securities depositories in the U.S. and Europe. Its cutting-edge trading technology is used by 70 exchanges in 50 countries. It is listed on the Nasdaq under the symbol NDAQ and has been part of the S&P 500 since 2008.
 
The Nasdaq computerized trading system was initially devised as an alternative to the inefficient “specialist” system, which had been the prevalent model for almost a century. The rapid evolution of technology has made the Nasdaq’s electronic trading model the standard for markets worldwide.
 
As a leader in trading technology from the outset, it was only fitting that the world’s technology giants chose to list on the Nasdaq in their early days. As the technology sector grew in prominence in the 1980s and 1990s, the Nasdaq became the most widely followed proxy for this sector. The technology and dot-com boom and bust of the late 1990s is exemplified by the rise and fall of the Nasdaq Composite during this period. The index crossed the 1,000 mark for the first time in July 1995, soared in the following years and peaked at over 4,500 in March 2000, before slumping almost 80% by October 2002 in the subsequent correction.
 


Further Reading


Factors influencing dividend policy decisions of Nasdaq firms
onlinelibrary.wiley.com [PDF]
… Second, we compare the responses between managers at financial firms (finance, insurance, and real estate … Therefore, our study is the first survey to focus on Nasdaq firms and to … the 1,000 largest US firms to describe the interplay among the investment, financing, and dividend …

Three essays in finance: Informed trading on NASDAQ, contrarian trading by insider, and swap pricing.Three essays in finance: Informed trading on NASDAQ, contrarian trading by insider, and swap pricing.
elibrary.ru [PDF]
… Second, we compare the responses between managers at financial firms (finance, insurance, and real estate … Therefore, our study is the first survey to focus on Nasdaq firms and to … the 1,000 largest US firms to describe the interplay among the investment, financing, and dividend …

NASDAQ-listed European and Asia Pacific ADRs: does market-timing affect long-term performance?NASDAQ-listed European and Asia Pacific ADRs: does market-timing affect long-term performance?
www.tandfonline.com [PDF]
… Second, we compare the responses between managers at financial firms (finance, insurance, and real estate … Therefore, our study is the first survey to focus on Nasdaq firms and to … the 1,000 largest US firms to describe the interplay among the investment, financing, and dividend …

Sentiment changes, stock returns and volatility: evidence from NYSE, AMEX and NASDAQ stocksSentiment changes, stock returns and volatility: evidence from NYSE, AMEX and NASDAQ stocks
www.tandfonline.com [PDF]
… Second, we compare the responses between managers at financial firms (finance, insurance, and real estate … Therefore, our study is the first survey to focus on Nasdaq firms and to … the 1,000 largest US firms to describe the interplay among the investment, financing, and dividend …

The linkage between the US and Korean stock markets: the case of NASDAQ, KOSDAQ, and the semiconductor stocksThe linkage between the US and Korean stock markets: the case of NASDAQ, KOSDAQ, and the semiconductor stocks
www.sciencedirect.com [PDF]
… Second, we compare the responses between managers at financial firms (finance, insurance, and real estate … Therefore, our study is the first survey to focus on Nasdaq firms and to … the 1,000 largest US firms to describe the interplay among the investment, financing, and dividend …

Forecast of stock market based on nonharmonic analysis used on NASDAQ since 1985Forecast of stock market based on nonharmonic analysis used on NASDAQ since 1985
www.tandfonline.com [PDF]
… Second, we compare the responses between managers at financial firms (finance, insurance, and real estate … Therefore, our study is the first survey to focus on Nasdaq firms and to … the 1,000 largest US firms to describe the interplay among the investment, financing, and dividend …

Using multivariate stochastic volatility models to investigate the interactions among NASDAQ and major Asian stock indicesUsing multivariate stochastic volatility models to investigate the interactions among NASDAQ and major Asian stock indices
www.tandfonline.com [PDF]
… Second, we compare the responses between managers at financial firms (finance, insurance, and real estate … Therefore, our study is the first survey to focus on Nasdaq firms and to … the 1,000 largest US firms to describe the interplay among the investment, financing, and dividend …

International diversification, capital structure and cost of capital: evidence from ICT firms listed at NASDAQInternational diversification, capital structure and cost of capital: evidence from ICT firms listed at NASDAQ
www.tandfonline.com [PDF]
… Second, we compare the responses between managers at financial firms (finance, insurance, and real estate … Therefore, our study is the first survey to focus on Nasdaq firms and to … the 1,000 largest US firms to describe the interplay among the investment, financing, and dividend …

A test for rational bubbles in the NASDAQ stock index: A fractionally integrated approachA test for rational bubbles in the NASDAQ stock index: A fractionally integrated approach
www.sciencedirect.com [PDF]
… Second, we compare the responses between managers at financial firms (finance, insurance, and real estate … Therefore, our study is the first survey to focus on Nasdaq firms and to … the 1,000 largest US firms to describe the interplay among the investment, financing, and dividend …

A comparison of volatility and bid–ask spread for NASDAQ and NYSE after decimalizationA comparison of volatility and bid–ask spread for NASDAQ and NYSE after decimalization
www.tandfonline.com [PDF]
… Second, we compare the responses between managers at financial firms (finance, insurance, and real estate … Therefore, our study is the first survey to focus on Nasdaq firms and to … the 1,000 largest US firms to describe the interplay among the investment, financing, and dividend …



Q&A About Nasdaq


Which companies are included in these indexes/indices?

Apple Inc., Google Inc., Microsoft Corp., Oracle Corp., Amazon Inc., Intel Corp., Amgen Inc.

Is Nasdaq a stock exchange or an index?

It is both an exchange and an index.

Which country's companies have been most active as initial public offerings (IPOs) over time ?

Canada's companies have been most active as initial public offering s ( IPOs ) over time .

Which company has been listed on NASDAQ since 1971?

Microsoft Corporation was first listed on NASDAQ in March 1986 and has remained there ever since then.

What is Nasdaq?

A global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks.

Where is Nasdaq headquartered?

New York City.

When did Nasdaq begin operations?

In 1971.

How many markets does Nasdaq operate today?

26 markets, including equities, options, fixed income, derivatives and commodities exchanges and clearinghouses in the United States and Europe.

How many stocks were traded at a value greater than $1 billion each day during 2012 ?

A total of 16 stocks were traded at a value greater than $1 billion each day during 2012 .

What are three of its most popular indexes/indices?

The NASDAQ Composite Index (NASDAQ), The Global Select Market Index (GSMI) and The Nordic Stock Exchange Index (NSE).

Who owns the Nasdaq Stock Market?

NASDAQ OMX Group owns the Nasdaq Stock Market.

Who owns the company that operates the NASDAQ marketplaces?

The NASDAQ OMX Group Inc., which includes more than 26 exchanges worldwide operating under three brands (Nasdaq OMX, Borsa Italiana and OMX).

Where is the Nasdaq Stock Market located?

The Nasdaq Stock Market is located in New York City.

How many companies are listed on NASDAQ?

More than 3,800 companies are listed on NASDAQ.

What does it mean to be listed on one of these indexes/indices?

To be listed on one of these indexes means that a company's stock has been selected by a committee to represent a particular sector or industry group based on certain criteria such as size or liquidity of shares traded etc..

What is the Nasdaq Stock Market?

The Nasdaq Stock Market is an American stock exchange based in New York City. It is ranked second on the list of stock exchanges by market capitalization of shares traded, behind the New York Stock Exchange.

Which company was added to NASDAQ after it merged with NYSE Euronext in February 2013 ?

The company that was added to NASDAQ after it merged with NYSE Euronext in February 2013 was IntercontinentalExchange Group Incorporated (ICE).