Nasdaq

NASDAQ is an electronic stock exchange in the United States. Founded in 1971, it is now the second largest stock exchange in the world, second only to the New York Stock Exchange. The English name of Nasdaq "NASDAQ" was originally the abbreviation of National Association of Securities Dealers Automated Quotations.

The unique feature of Nasdaq is that it allows market promissory notes and stock drawers to trade directly through the phone or the Internet without being restricted to the trading floor, and most of the transaction content is related to new technologies, especially computers, making it the world's first electronic Securities exchange market. So generally speaking, the companies listed on Nasdaq are mainly high-tech companies. These large technology companies include Apple, Google, Amazon, Microsoft, Tesla, Meta Platforms, TSMC, Broadcom, ASML, Adobe, Apps Materials etc.

Nasdaq also has its own indexes, such as the Nasdaq Composite Index, Nasdaq 100 Index, Nasdaq Biotechnology Index, etc., which reflect market trends and performance. Nasdaq also provides a variety of solutions to help businesses and investors participate in and build modern markets.

History of the Nasdaq Exchange

The predecessor of the Nasdaq Exchange was the National Association of Securities Dealers (NASD) established in 1968 to regulate and supervise the securities business in the United States. On February 8, 1971, NASD launched the National Association of Securities Dealers Automated Quotation System (NASDAQ) as an electronic stock quotation system, but it did not provide electronic trading.

In 1975, the U.S. Securities and Exchange Commission (SEC) abolished the fixed commission rate system, allowing securities brokers to freely set commission rates, which promoted competition and innovation. Taking advantage of its advanced technology, Nasdaq began to provide electronic trading services and attracted many emerging high-tech companies to join its market.

In 1985, Nasdaq launched the world's first computerized stock trading system (Computer Assisted Execution System, CAES), allowing investors to place orders and execute transactions through computers. In 1992, Nasdaq became the first securities market in the world to implement 24-hour trading.

In 2000, Nasdaq separated from NASD and established NASDAQ Stock Market, Inc., which was listed on its own stock exchange on July 2, 2002, with the stock code NASDAQ :NDAQ. In 2007, Nasdaq agreed to acquire Europe's OMX Group for US$3.7 billion and completed the merger in 2008. The new company was named Nasdaq OMX Group.

On April 1, 2013, Nasdaq acquired the electronic bond trading platform eSpeed from currency broker BGC Partners for US$750 million in cash, allowing Nasdaq to enter a market with a daily trading volume of US$500 billion for the first time. On June 29, 2015, Nasdaq OMX Group changed its name to NASDAQ, Inc. to emphasize its global brand and diversified businesses.

Features of the Nasdaq Exchange

The Nasdaq Exchange is very different from the traditional stock exchange, mainly in the following aspects:

Electronic transactions. The Nasdaq exchange does not have a physical trading floor, but trades are conducted over the phone or over the Internet. This makes transactions faster, more convenient and more transparent.

Multiple market maker system. The Nasdaq exchange does not have a dedicated dealer, but instead has multiple market makers competing to provide quotes and execute transactions. This helps narrow spreads, lower transaction costs, and increase liquidity.

Concentration of high-tech companies. The Nasdaq attracts many high-tech companies to its market because they can enjoy lower listing requirements and fees, as well as greater flexibility and innovation.

Global perspective. The Nasdaq Exchange is not only influential in the United States, but also has businesses and partners in Europe, Asia and other regions. It is also committed to promoting the development and integration of global markets.

The future of the Nasdaq exchange

As the world's largest electronic stock market, the Nasdaq Exchange has been constantly innovating and progressing to respond to market changes and challenges. It is also actively expanding its business scope and service areas to provide more value and opportunities to enterprises and investors.

In the future, Nasdaq will continue to leverage its technological advantages and use emerging technologies such as artificial intelligence, blockchain, and cloud computing to improve its market efficiency, security, and transparency. It will also strengthen its cooperation and connections with other markets around the world, providing more convenience and options for cross-border transactions and investments. It will also focus on more social responsibility and sustainable development, support environmental, social and governance (ESG)-related businesses and products, and promote a diverse and inclusive market culture.

The Nasdaq Exchange is a dynamic and creative market that continues to create value and opportunities for companies and investors. If you want to know more about the Nasdaq Exchange, you can visit its official website or follow its social media platforms.