Mar 08 2011

What is the Nasdaq stock exchange?

Category: Finance


Nasdaq Stock MarketNASDAQ is an acronym that stands for the National Association of Security Dealers Automated Quotation system (it is now considered a proper noun, Nasdaq). It is the largest computer based trading exchange in the US by volume and second-largest by market cap in the world, trailing only the NYSE.

The Nasdaq utilizes the Nasdaq composite as its main index. The Nasdaq composite is made up of all of the stocks that trade on the Nasdaq stock market, so if it’s traded it’s included. The Nasdaq has close to three thousand listed companies and is characterized by their large cross section of technology based organizations. To get listed, a company must first meet minimum requirements for capital, shareholders, and shares outstanding. You’ll typically be able to distinguish a Nasdaq traded stock by its ticker symbol, which is usually 4 letters. The NYSE uses 1, 2, and 3 letter ticker symbols.

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