What Is the NASDAQ Stock Exchange?

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The NASDAQ stock exchange is a newer stock exchange market that is the preeminent place to buy and sell stocks, particularly stocks for younger, smaller businesses. Find out how most stock exchanges around the world are based on the NASDAQ model with information from a financial analyst in this free video on the stock market.

Part of the Video Series: Stock Market Tips & Facts
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Video Transcript

I'm Roger Groh of Groh Asset Management, and today, we're here to talk about the NASDAQ stock market. In the old days, the New York Stock Exchange was a stodgy, old place where only certain larger companies could be bought or sold. If you were a smaller company, it was very difficult to get your stock listed on the New York. Therefore, another exchange was founded, called the NASDAQ -- really, for smaller, younger, more upstart kinds of businesses. And over the last 30 years, it has become the preeminent place to buy and sell stock. The NASDAQ became the model globally for how a stock exchange should be run because they were the first to be fully computerized and the most open exchange going. If you were to visit the stock exchanges in China or India or Thailand or much of Europe, you find that their exchanges were modeled on the NASDAQ. And in many cases, the NASDAQ still serves as the operating model and adviser for how to manage that exchange. Why buy NASDAQ? Well, frequently, the spread between bid and ask or commission that the house takes is smaller on the NASDAQ. But you have to be careful as to what you're buying, and look at each individual trade to figure out what's best for you. Hope that helps. I'm Roger Groh of Groh Asset, and thank you very much for spending time with me.


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