Nasdaq (National Association of Securities Dealers Automated Quotations) is a worldwide online market where people can buy and sell stocks. It was first called the National Association of Securities Dealers Automated Quotations. It was created as a part of the National Association of Securities Dealers (NASD), which is now called the Financial Industry Regulatory Authority (FINRA).
The Securities and Exchange Commission (SEC) encouraged NASD to create Nasdaq for trading securities not listed on an exchange. This led to the birth of the first electronic trading system, which started operating in 1971.
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The National Association of Securities Dealers Automated Quotations, based in New York, started as a part of the NASD and launched on Feb. 8, 1971. It was the first automated stock exchange globally.
It became a national securities exchange in 2006 after separating from the NASD. In 2008, it joined with the Scandinavian exchanges group OMX to form the Nasdaq OMX Group. The company was renamed Nasdaq Inc. in 2015.
Over 5,000 companies are traded on the exchange every day, including big technology companies like Apple and Microsoft.
The National Association of Securities Dealers Automated Quotations has had three tiers since 2006: the Nasdaq Global Select Market, the Nasdaq Global Market, and the Nasdaq Capital Market.
The exchange has 29 markets where stocks, derivatives, fixed income, and commodities are traded in the U.S., Canada, Scandinavia, and the Baltics. It also manages a clearinghouse and five central securities depositories in the United States and Europe. Trading technology from the company is utilized by 100 exchanges across 50 countries.
Conclusion
The National Association of Securities Dealers Automated Quotations, a major stock exchange in the United States, has over 5,000 domestic and foreign companies listed, with a strong emphasis on technology. It started operating in 1971 as the world’s first automated exchange. The Nasdaq Composite Index, consisting of over 2,500 listed companies, is a widely followed stock market index that reflects the U.S. and global economies.