NASDAQ

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The NASDAQ Stock Market ( i/nzdk/), com-monly known as the NASDAQ (currently stylized asNasdaq), is an American stock exchange. It is thesecond-largest exchange in the world by market capital-ization, behind only the New York Stock Exchange.[3]The exchange platform is owned by The NASDAQOMXGroup, which also owns the OMX stock market networkand several other US stock and options exchanges.

1 History

Former logo

In 1972,NASDAQ stood forNational Association of Se-curities Dealers Automated Quotations.[4] NASDAQwas founded in 1971 by the National Association of Secu-rities Dealers (NASD),[5] which divested itself of NAS-DAQ in a series of sales in 2000 and 2001. NASDAQ isowned and operated by the The NASDAQ OMX Group,the stocks of which were listed on its own stock exchangebeginning July 2, 2002, under the ticker symbol NDAQ.When the NASDAQ began trading on February 8, 1971,it was the worlds rst electronic stock market. At rst, itwas merely a quotation system and did not provide a wayto perform electronic trades.[6] The NASDAQ helpedlower the spread (the dierence between the bid price andthe ask price of the stock) but was unpopular among bro-kerages which made much of their money on the spread.

NASDAQ eventually assumed the majority of majortrades formerly executed by the over-the-counter (OTC)system of trading, although there are still numerous se-curities traded in this fashion. As late as 1987, the NAS-DAQ exchange was still commonly referred to as OTCin media and also in the monthly Stock Guides issued byStandard & Poors Corporation.Over the years, NASDAQ became more of a stock mar-ket by adding trade and volume reporting and automatedtrading systems. NASDAQ was also the rst stock mar-ket in the United States to start trading online, highlight-ing NASDAQ-traded companies (usually in technology)and closing with the declaration that NASDAQ is thestock market for the next hundred years. Its main indexis the NASDAQ Composite, which has been publishedsince its inception. However, its exchange-traded fundtracks the large-cap NASDAQ-100 index, which was in-troduced in 1985 alongside the NASDAQ 100 FinancialIndex.Until 1987, most trading occurred via the telephone.During the October 1987 stock market crash, however,market makers often did not answer their phones. Toremedy this, the Small Order Execution System (SOES)was established. SOES provides an electronic method fordealers to enter their trades. NASDAQ requires marketmakers to honor trades executed using SOES.In 1992, NASDAQ joined with the London Stock Ex-change to form the rst intercontinental linkage ofsecurities markets. The National Association of Securi-ties Dealers spun oNASDAQ in 2000 to form a publiclytraded company, the NASDAQ Stock Market, Inc.In 2006, the status of NASDAQ was changed from astock market to a licensed national securities exchange.[7]

To qualify for listing on the exchange, a company must beregistered with the United States Securities and ExchangeCommission (SEC), must have at least three market mak-ers (nancial rms that act as brokers or dealers for spe-cic securities) and must meet minimum requirementsfor assets, capital, public shares, and shareholders.In February 2011, in the wake of an announced mergerof NYSE Euronext with Deutsche Brse, speculation de-veloped that NASDAQ OMX and Intercontinental Ex-change (ICE) could mount a counter-bid of their ownfor NYSE. NASDAQ OMX could be looking to acquirethe American exchanges cash equities business, ICE thederivatives business. As of the time of the speculation,NYSE Euronexts market value was $9.75 billion. Nas-daq was valued at $5.78 billion, while ICE was valued at

1

2 7 REFERENCES

$9.45 billion.[8] Late in the month, Nasdaq was reportedto be considering asking either ICE or the Chicago Mercto join in what would probably have to be, if it proceeded,an $1112 billion counterbid.[9]

The European Association of Securities Dealers Auto-matic Quotation System (EASDAQ) was founded origi-nally as a European equivalent to NASDAQ. It was pur-chased by NASDAQ in 2001 and became NASDAQ Eu-rope. Operations were shut down, however, as a result ofthe burst of the dot-com bubble. In 2007, NASDAQ Eu-rope was revived as Equiduct, and is currently operatingunder Brse Berlin.[10]

On June 18, 2012, NASDAQ became a founding mem-ber of the United Nations Sustainable Stock Exchangesinitiative on the eve of the United Nations Conference onSustainable Development (Rio+20).[11]

In 2013, NASDAQ OMX was approached by private eq-uity rm Carlyle Group about taking the exchange oper-ator private, but the talks fell apart over a disagreementon price.[12]

2 Quote availabilityNASDAQ quotes are available at three levels:

Level 1 shows the highest bid and lowest askinsidequote.

Level 2 shows all public quotes of market makerstogether with information of market dealers wishingto buy or sell stock and recently executed orders.[13]

Level 3 is used by the market makers and allowsthem to enter their quotes and execute orders.[14]

3 Trading scheduleNASDAQ has a pre-market session from 4:00 AM to9:30AMEastern, a normal trading session from 9:30AMto 4:00 PM, and a post-market session from 4:00 PM to8:00 PM.[15]

4 Market tiersNASDAQ has three dierent market tiers:

NASDAQ Capital Market (small cap) is an eq-uity market for companies that have relatively smalllevels of market capitalization. Listing require-ments for such small cap companies are lessstringent than for other Nasdaq markets that listlarger companies with signicantly higher marketcapitalization.[16]

NASDAQ Global Market (mid cap) is made upof stocks that represent the Nasdaq Global Mar-ket. The NASDAQGlobal Market consists of 1,450stocks that meet Nasdaqs strict nancial and liq-uidity requirements, and corporate governance stan-dards. The Global Market is less exclusive than theGlobal Select Market.[17]

NASDAQ Global Select Market (NASDAQ-GSLarge cap) is a market capitalization-weighted in-dex made up of US-based and international stocksthat represent the NASDAQ Global Select MarketComposite. The NASDAQ Global Select Marketconsists of 1,200 stocks that meet Nasdaqs strictnancial and liquidity requirements and corporategovernance standards. The Global Market Selectis more exclusive than the Global Market. EveryOctober, the Nasdaq Listing Qualications Depart-ment reviews the Global Market Composite to de-termine if any of its stocks have become eligible forlisting on the Global Select Market.[18][19]

5 Average annualized growth rateAs of June 2015, the NASDAQ has had an average annu-alized growth rate of 9.24% since its opening in February1971. Since the end of the recession in June 2009 how-ever, it has increased by 18.29% per year. [20]

6 See also ACT (NASDAQ) Directors Desk Economy of New York City NASDAQ-100 NASDAQ futures NASDAQ MarketSite NASDAQ OMX Group NASDAQ Dubai

7 References[1] NASDAQ Companies - NASDAQ.com. NASDAQ.

Retrieved December 14, 2014.

[2] World-exchanges.org Archived 13 February 2011 atWebCite

[3] Monthly Reports. World-Exchanges.org. World Feder-ation of Exchanges. Retrieved June 3, 2015.

3[4] Frequently Asked Questions. NASDAQ.com. NAS-DAQ, n.d. Web. 23 December 2001. Archived 13 Febru-ary 2011 at WebCite

[5] Terrell, Ellen. History of the American and NASDAQStock Exchanges. LOC.gov. Library of Congress Busi-ness Reference Services. Retrieved 27 April 2013.

[6] 'this automated quotation system quickly matured far be-yond its original quote-service roots, evolving into whatit is today' | http://www.nasdaq.com/help/help-faq.aspx |Retrieved February 27, 2012

[7] Walsh, Michelle. Nasdaq Stock Market Becomes ANational Securities Exchange; Changes Market Designa-tions.

[8] De la Merced, Michael J., Nasdaq and ICE Hold TalksOver Potential N.Y.S.E. Bid, The New York Times Deal-book, February 18, 2011, 12:46 pm. Retrieved February18, 2011.

[9] Fraser, Michelle E., Nasdaq May Ask CME or ICE forHelp inNYSECounterbid,WSJ Says, Bloomberg, Febru-ary 26, 2011 9:30 AM ET. Retrieved March 1, 2011.

[10] Easdaq Makes A Comeback As Equiduct. Archivedfrom the original on February 13, 2011.

[11] Sustainable Stock Exchanges Initiative: Exchanges list-ing over 4,600 companies commit to promoting sustain-ability. Reuters.com. Reuters. Retrieved 13 May 2014.

[12] http://www.reuters.com/article/2013/02/11/us-nasdaq-carlyle-idUSBRE91A0UM20130211

[13] Order Book, Level 2 Market Data, and Depth of Mar-ket. Daytrading.About.com. Archived from the originalon February 13, 2011.

[14] NASDAQ Level III Quote.[15] NASDAQ Trading Schedule. NASDAQ.com. Retrieved

20 April 2014.[16] Denition of 'Nasdaq SmallCap Market', now known as

Nasdaq Capital Market. Investopedia.com. Retrieved 25August 2013.

[17] Denition of 'NASDAQGlobalMarket Composite'". In-vestopedia.com. Retrieved 25 August 2013.

[18] Denition of 'NASDAQ Global Select Market Compos-ite'". Investopedia.com. Retrieved 25 August 2013.

[19] Pinto, Jerald E.; Henry, Elaine; Robinson, Thomas R.;Stowe, John D. (2010). Equity Asset Valuation. CFA In-stitute Investment Series 27 (2 ed.). John Wiley & Sons.p. 6. ISBN 9780470579657. Retrieved 2013-03-04. [...]NASDAQ-GS stands for 'Nasdaq Global Select Market,'[...]

[20] http://www.measuringworth.com/DJIA_SP_NASDAQ/result.php

8 External links Ocial website

4 9 TEXT AND IMAGE SOURCES, CONTRIBUTORS, AND LICENSES

9 Text and image sources, contributors, and licenses9.1 Text

NASDAQ Source: https://en.wikipedia.org/wiki/NASDAQ?oldid=670683358 Contributors: Damian Yerrick, The Cunctator, Mav, Koy-aanis Qatsi, Andre Engels, Kowloonese, Youssefsan, Olivier, Mrwojo, Edward, Voidvector, Stephen C. Carlson, Blacklite, Minesweeper,Tregoweth, Ams80, Ahoerstemeier, Andres, Jiang, Sudhir Krishnan~enwiki, Lukobe, Mxn, Magnus.de, Choster, Daniel Quinlan, Greenrd,WhisperToMe, Itai, Nricardo, Stormie, Chuunen Baka, Noldoaran, Kizor, Nurg, Modulatum, SEKIUCHI, Jxg, Jrdioko, Mobius, An-tandrus, Rdsmith4, Sanbec, Maximaximax, Balcer, Bumm13, Jareha, Gscshoyru, Creidieki, Deglr6328, Calwatch, Chmod007, Can-terbury Tail, N328KF, EugeneZelenko, Discospinster, Steve Farrell, Patricknoddy, Rich Farmbrough, Paul August, Alue, JoeSmack,Lalala666, Aranel, Omnibus, El C, Hayabusa future, Aude, Shanes, Art LaPella, Mairi, Jpgordon, Elipongo, Angie Y., Pokrajac, Md-karazim, Jerryseinfeld, Chirag, Azn king28, MPerel, Polylerus, Nsaa, HasharBot~enwiki, Mroach, Vizcarra, Jumbuck, Alansohn, Gary,Polarscribe, Jordan117, Andrewpmk, Sl, Goldom, Echuck215, Wdfarmer, Wtmitchell, Say1988, Max Naylor, Mikeo, Toyoda, OwenX,Woohookitty, Spymanut, Uris, SDC, Zzyzx11, MarcoTolo, LinkTiger, Allen3, Graham87, Jclemens, Krymson, Search4Lancer, Sjakkalle,Rjwilmsi, Seidenstud, Tim!, Makaristos, Ligulem, ElKevbo, DouglasGreen~enwiki, Tarc, Bhadani, Yamamoto Ichiro, Yuletide, GroundZero, Ysangkok, RexNL, Gurch, Lmatt, King of Hearts, Chobot, Jersey Devil, Gwernol, YurikBot, RobotE, Todd Vierling, Elapsed, Russ-Bot, Ryansworld100000, Koeyahoo, Bhny, SpuriousQ, Bovineone, B. Phillips, NawlinWiki, Smash, Liastnir, Voidxor, Ben Lunsford,MartinHagberg~enwiki, Malepheasant, Acetic Acid, Bingbingma, Robillard, Crisco 1492, Cursive, American2, Knotnic, Nikkimaria,Theda, Closedmouth, Denisutku, Arthur Rubin, Flyerhell, Alias Flood, Shawnc, Smurrayinchester, ALL YOUR TECH STOCK AREBELONG TO US, ViperSnake151, Elliskev, SmackBot, Kirby Morgan, Gwax, Delldot, Teimu.tm, Gilliam, Ohnoitsjamie, Andy M. Wang,BrynJones216, Afa86, Pimms1, Persian Poet Gal, MalafayaBot, SchftyThree, Neo-Jay, Deathanatos, A. B., Famspear, Vanished userllkd8wtiuawfhiuweuhncu3tr, Sumahoy, Timberlax, Greenshed, RedHillian, MrRadioGuy, IrisKawling, Gautamjain 82, Diasimon2003,Maxxpower, Drunken Pirate, Wv235, SashatoBot, ArglebargleIV, Kuru, John, Loodog, Sir Nicholas de Mimsy-Porpington, Ckatz, J Spratt,TastyPoutine, TPIRFanSteve, AEMoreira042281, Zapqwerty28, Hu12, JYi, JoeBot, Tony Fox, Lucy-marie, Rigosantana3~enwiki, Fma12,CmdrObot, Patchouli, Sir Vicious, Page Up, CWY2190, NaBUru38, NickW557, Adaobi, Apterygial, Golgo-13, Cydebot, Clappingsimon,Gogo Dodo, Corpx, Carlosj, Carstensen, Steven Russell, DumbBOT, Nugneant, HappyInGeneral, Katachresis, Mojo Hand, Nonagonal Spi-der, A3RO, James086, Katiegoesmew, LachlanA, KrakatoaKatie, AntiVandalBot, Jayron32, Johnian144, Desertsky85450, Daniel endres,Altamel, Arsenikk, JAnDbot, Davewho2, Barek, MER-C, Epeeeche, Greensburger, PhilKnight, .anacondabot, Magioladitis, Bongwarrior,VoABot II, JNW, Username550, PelleSmith, Catgut, Bizwhiz, DerHexer, JaGa, Pax:Vobiscum, Gjd001, Stephenchou0722, MartinBot,Axlq, Jerry teps, Leyo, Smokizzy, J.delanoy, Pharaoh of the Wizards, Bogey97, BillWSmithJr, 72Dino, Drewwiki, LordAnubisBOT,Thomas Larsen, DarwinPeacock, Plasticup, Jvcdude, Random Passer-by, Idioma-bot, Funandtrvl, Veganguy, Judielaine, Deor, VolkovBot,Je G., Indubitably, AlnoktaBOT, Station1, P00n3d, TXiKiBoT, FxMnl, Downtownblue, BuickCenturyDriver, Keelerface, Miranda, Rei-bot, WikipedianYknOK, Dominiclai06, Anna Lincoln, CaptinJohn, INXS-Girl, Martin451, JhsBot, Broadbot, UnitedStatesian, Mrbeasty,Sentineneve, 36a, Urbanrenewal, Madhero88, Sultec, Matgp~enwiki, Fahsco, Billinghurst, Lamro, Vchimpanzee, Skyylight, Brianga, Ve-blenBot, PGWG, EmxBot, Fanatix, SieBot, Swliv, VVVBot, Caltas, Triwbe, Wing gundam, GlassCobra, Interchange88, Bentogoa, Pxma,Oxymoron83, Anti Internet, Lightmouse, Malatinszky, Rosiestep, Presidentman, Iknowyourider, Jfromcanada, Mygerardromance, Sam-myjmoseley, Twinsday, Martarius, Elassint, ClueBot, Rodleen, The Thing That Should Not Be, Kamath.nakul, S51438, Der Golem, NightGoblin, Boing! said Zebedee, CounterVandalismBot, OccamzRazor, Wlklpedla is meant to be vanda1ized, Ottawahitech, Tmazhindu, DoDueDiligence, Pat Stevenson2007 s, Excirial, Alexbot, Frikgpon, M Mooabus Q, Sons of Revolt, Dekisugi, Mlas, Thingg, Vikram-parsani, DumZiBoT, AgnosticPreachersKid, Gnowor, BodhisattvaBot, Maxonmax, Skarebo, Deoxraes, SilvonenBot, Mm40, David-Ferrer, Addbot, RachelEhrenfeld2, Betterusername, Captain-tucker, Fieldday-sunday, CarterFLA, CanadianLinuxUser, NjardarBot, Ro-jelio, Tugugugy, Dayewalker, Hmulhim, MMoranTraders, Tide rolls, Shadis, Legobot, , Luckas-bot, TheSuave, Yobot,2D, Bunnyhop11, Tohd8BohaithuGh1, TaBOT-zerem, REDyellowGreenBLUE, AnomieBOT, Olexa yurchenko, Blahcake666, Galoubet,Pyrrhus16, Royote, JackieBot, JaredInsanity, Materialscientist, Citation bot, Axostech, BHAJAN PARTAP SEKHON, Xqbot, NASDAQ-FOLIFE, Mr. Prez, DSisyphBot, Ziyathegreat, Kbnewnam, Shirik, RibotBOT, SassoBot, Reliancepower2009, 78.26, SHallathome, Workyworky, KezianAvenger, CircleAdrian, Cuteandcool1001, Mgcalhoun, Winterst, Badger4life, Rahuljain10, Tanweer Morshed, SupremeDeliciousness, Tinton5, RedBot, Phearson, SpaceFlight89, Hopper40, Sivil12, ApocalypZe666, EdoDodo, Reconsider the static, FoxBot,Evosoho, Lostyi, Lotje, Decstop, Comet Tuttle, Vrenator, Franckn55, Reaper Eternal, UweD, Jrobinson nasdaq, Mean as custard, Rjwilm-siBot, Sargdub, Polly Ticker, DASHBot, EmausBot, WikitanvirBot, Gfoley4, Htanna, Prometheus.pyrphoros, Halfd, Dashbrother2415,Tommy2010, Wikipelli, K6ka, C16sh, Memberya2, Kkm010, ZroBot, PS., Maafar, Mar4d, SporkBot, Monterey Bay, Makecat, Mcmat-ter, , Donner60, DarkXWeatherX, Wakebrdkid, ClueBot NG, Qirk, Gareth Grith-Jones, Jack Greenmaven, Jrinaldi97, MelbourneS-tar, Jamesderektate, Cntras, ScottSteiner, Ekphraster, Widr, Docteur Saint James, Helpful Pixie Bot, Harless13, Calabe1992, Pine, Dja-coni, David2416, Nen, Wiki13, MusikAnimal, Compfreak7, Fairlyoddparents1234, Qasdt, 23haveblue, M.Fin.User, Martinemde, Sox-Fan2013, Mm152, Dexbot, Cwobeel, Whileworth, Lugia2453, Khosh5, Kevin12xd, Nimetapoeg, Mattk104, Eyesnore, Jacobp84, EllenCT,Kharkiv07, Fabrizioangulo, Rettyretro, Juhuyuta, JaconaFrere, Djosopolar, Poepkop, Shomail193, ShawntheGod, Vieque, TheQ Editor,Manasi110, Mohamad Muliadi Antony, Nkootniko, Dg2002, ClassicOnAStick, WCVB98swell, TheTruth86, ChamithN, TianZhou93,SoSivr, Bderrett, TheEditor867, Hunenmensch, SilverSurngSerpent and Anonymous: 590

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HistoryQuote availabilityTrading scheduleMarket tiersAverage annualized growth rateSee alsoReferencesExternal linksText and image sources, contributors, and licensesTextImagesContent license