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The world of investments often seems daunting, with all the abbreviations floating around. If you're new to investing, you probably heard of NASDAQ many times already, but what is it exactly?
In short, NASDAQ is a U.S. based stock exchange dominated by technology stocks. Thus, you can be sure that anything related to tech gets involved. Among these are Apple, Microsoft, IBM, Facebook, and other tech industry companies.
If you're looking for more information, then read on. In this article, you'll find out everything you need to know about Nasdaq and how it works. This way, you'll grasp more about this stock exchange and how it operates.
Without further ado, let's get into it!
The NASDAQ (National Association of Securities Dealers Automated Quotations) is a U.S. based stock exchange. It is famous for listing some of the world’s largest tech companies. This exchange is the first marketplace to issue electronic-based stock quotes.
Like other major stock exchanges, it acts as an intermediary between blue-chip companies and the open marketplace.
Aside from the tech-based stocks, it also lists companies from various industries. It includes stocks within finance, energy, transportation, and healthcare.
Further, the NASDAQ is a crucial platform for large companies looking to go public for the first time. With an initial public offering, companies can use it to help with fundraising campaigns.
The largest IPO facilitated by NASDAQ was that of Facebook way back in 2012. In total, the said social media company raised $16 billion.
In general, NASDAQ is a global electronic marketplace for buying and trading securities. It is also the world's first electronic exchange.
The NASDAQ is a type of electronic stock exchange. Electronic exchange is a trading platform where all transactions happen through a computer.
Among such transactions are order entry and forwarding, matching buy and sell orders, and price determination.
Unlike a trading floor, an electronic exchange doesn't need the participants' physical appearance. For this reason, this exchange is accessible from any location.
There is only one Nasdaq exchange, but there are 12 other major stock exchanges worldwide. Below is a rundown of exchanges.
In the U.S., there are six exchanges, namely:
Other stock exchanges outside the U.S. are the following:
Nasdaq makes money in specific ways. In a nutshell, it has diversified its offerings over the years to keep pace with developments happening in the market.
The sources of revenue for Nasdaq are:
Nasdaq continues to maintain its position as one of the top global exchanges. It's all due to the healthy mix of organic growth, acquisition, and mergers.
The NASDAQ is a stock exchange that trades securities. Since it's a publicly-traded company, investors can buy shares of each on public exchanges.
Once you find a stock on the NASDAQ, you may have to work with a stock brokerage firm. You can also do it through an exchange-traded fund or (ETF).
Today, investing became easy through the internet and mobile applications. Among the well-known brokerages include Charles Schwab, Robinhood, and Interactive brokers. However, there are many more firms you can check out there.
Nasdaq Inc. is a publicly-traded company. Its operations are part of Nasdaq Inc., which is formerly Nasdaq OMX Group.
The Nasdaq is a stock market made up of 102 equity securities issued by 100 of the largest non-financial companies. It is a modified capitalization-weighted index. Further, its basis is an exchange, so it does not have any financial companies.
The Nasdaq is an American Stock Exchanged located in New York City. It's second in rank on the list of stock exchanges. The ranking comes from the market capitalization of shares traded.
The Nasdaq opens at 9:30 am and ends the day at 4:00 pm. The said hours are the regular trading hours for the U.S. Stock Market. It includes the New York Stock Exchange (NYSE).
Both stock exchanges run on Eastern time on weekdays, except stock market holidays.
The Nasdaq is an excellent stock exchange to look at whenever you want to start your investing endeavors. One of the easiest ways to do it is through an Exchange-traded Fund or ETF.
A promising sign for a smart investor is that he would always understand more about the assets he plans to take.
As always, any investment should always be something done with thorough research and discernment. In the end, it would be on you to choose to invest through the Nasdaq.
Isn't Nasdaq right for you? Check its best alternatives.