NASDAQ Market Information
The NASDAQ OMX company is the world's largest stock exchange company, according to the NASDAQ OMX website. The term "NASDAQ" is an acronym for the National Association of Securities Dealers Automated Quotation, a fully automated market with transactions completed by electronic and telecommunication systems.
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History
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NASDAQ was formed in 1971 to be the world's first fully automated stock market, according to the financial website ADVFN. The aim of the NASDAQ was to allow the trading of over-the-counter shares that could not reach the stringent listing requirements of the established stock exchanges, such as the New York Stock Exchange (NYSE). During the first day of trading on the NASDAQ, Feb. 8, 1971, more than 2,500 over-the-counter stocks were traded. By 1994, the NASDAQ had become the main rival to the NYSE and had overtaken the annual number of trades completed on the NYSE.
Markets
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NASDAQ began to split into two types, for larger and smaller companies by the mid-1980s, ADVFN reports. The National Market listed shares of larger companies, while the Small Cap Market offered trading of stocks of smaller companies. In 1998 the NASDAQ merged with the American Stock Exchange (AMEX) to become the NASDAQ AMEX Group. Despite the merger the two exchanges remained separate for trading purposes.
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Global
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The NASDAQ AMEX Group split up when the AMEX was acquired by the NYSE Euronext company. During 2007, the NASDAQ merged with Swedish exchange operator OMX and went on to acquire the oldest stock exchange in the U.S., the Philadelphia Stock Exchange. The NASDAQ OMX website reports that by 2010 the NASDAQ OMX company handles trades amounting to $4.5 trillion from 50 countries.
Listing Requirements
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The NASDAQ National Market requires companies listing stocks on the market to maintain a minimum share value of $1. ADVFN reports the total value of outstanding stocks must be at least $1.1 million. Companies that do not meet the listing requirements of the National Market have the opportunity to be listed on the Small Caps market. As the value and financial stability of companies change, the stocks of companies can move between the two markets.
Electronic
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The NASDAQ stock market does not have a physical trading floor; brokers conduct trades over an electronic system. ADVFN reports that to give the market a physical presence, the NASDAQ MarketSite was built in New York's Times Square. The NASDAQ MarketSite transmits market prices 24 hours a day over an electronic display outside the building.
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References
- Photo Credit stock market analysis screenshot image by .shock from Fotolia.com
