About The NASDAQ

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By Jaceson Maughan
eHow Contributing Writer

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The NASDAQ stands for the National Association of Securities Dealers Automated Quotations. It is one of the American stock exchanges, an equity securities trading market. There are more than 3,000 compaines listed in the NASDAQ, and monitoring it gives a good indication of the financial state of affairs for the United States as well as the world.

History

First appearing in 1971, the NASDAQ was the first electronic stock market in the world. It succeeded the traditional over-the-counter stock exchange system of trading. In 1987, it featured a SOES (small order execution system), an electronic system for dealers to enter their trades, replacing the old system of phoning in trades. In 1992, the NASDAQ combined with the London Stock Exchange to become the first securities market intercontinental link.

Features

The NASDAQ lists more than 3,000 securities for companies. There are about three dozen countries included, representing just about every industry in the world. Interestingly, more than 300 companies listed with the NASDAQ are non-U.S. companies. In order to qualify to be on the NASDAQ, a company must be registered with the Securities and Exchange Commission (SEC), have at least three financial firms that act as brokers and meet certain requirements for assets, shareholders and shares.

Geography

The NASDAQ is the largest electronic securities stock exchange in the United States. The group is headquartered in New York City. The Nasdaq-OMX, the group that runs the stock exchange, also runs eight stock exchanges throughout Europe and holds a third of the stock exchange in Dubai, United Arab Emirates.

Effects

The NASDAQ increases competition by allowing multiple market participants, including traders, brokers and others, to trade. Today, most technology stocks are traded on the NASDAQ, but it also includes retail, communications, financial empires, media, biotech and more. It affects the U.S. economy by providing information on sections of stocks for various companies. The indications of the performance on stocks for such companies as technology or media provide an indicator on the performances of such stocks.

Time Frame

The NASDAQ runs certain market sessions throughout the day, where certain transactions can take place. From 7 a.m. Eastern Standard Time to 9:30 a.m. EST, there is a pre-market session. A normal trading session runs from 9:30 a.m EST to 4 p.m. EST. The post-market session operates from 4 p.m. EST to 8 p.m. EST.