The Nasdaq Stock Market (/ˈnæzˌdæk/ ( listen), also known as Nasdaq) is an American

stock exchange. It is ranked second on the list of stock exchanges by market capitalization of
shares traded, behind only the New York Stock Exchange.[2] The exchange platform is owned
by Nasdaq, Inc.,[3] which also owns the Nasdaq Nordic stock market network and several
U.S. stock and options exchanges.

The Nasdaq Stock Market is owned and operated by Nasdaq, Inc.

Contents
 1 History
o 1.1 1971–1995
o 1.2 2000–present
 2 Quote availability
 3 Trading schedule
 4 Market tiers
 5 See also
 6 References
 7 External links

History
1971–1995

Former logo used from 1971 to 2014

"Nasdaq" was initially an acronym for the National Association of Securities Dealers
Automated Quotations.[4]

It was founded in 1971 by the National Association of Securities Dealers (NASD), now
known as the Financial Industry Regulatory Authority (FINRA).[5]

The Nasdaq stock market began operations on February 8, 1971. It was the world's first
electronic stock market.[5] At first, it was merely a "quotation system" and did not provide a
way to perform electronic trades.[6] The Nasdaq Stock Market helped lower the bid–ask
spread (the difference between the bid price and the ask price of the stock) but was unpopular
among brokers as it reduced their profits.

The NASDAQ Stock Market eventually assumed the majority of major trades that had been
executed by the over-the-counter (OTC) system of trading, but there are still many securities
traded in this fashion. As late as 1987, the Nasdaq exchange was still commonly referred to
as "OTC" in media reports[7] and also in the monthly Stock Guides (stock guides and
procedures) issued by Standard & Poor's Corporation.[citation needed]
Over the years, the Nasdaq Stock Market became more of a stock market by adding trade and
volume reporting and automated trading systems.

In 1981 Nasdaq traded 37% of the U.S. securities markets' total of 21 billion shares. By 1991,
Nasdaq's share had grown to 46%.[8]

In 1998, it was the first stock market in the United States to trade online, using the slogan
"the stock market for the next hundred years".[9] The Nasdaq Stock Market attracted many
companies during the dot-com bubble.

Its main index is the NASDAQ Composite, which has been published since its inception. The
QQQ exchange-traded fund tracks the large-cap NASDAQ-100 index, which was introduced
in 1985 alongside the NASDAQ Financial-100 Index, which tracks the largest 100 companies
in terms of market capitalization.

In 1992, the Nasdaq Stock Market joined with the London Stock Exchange to form the first
intercontinental linkage of capital markets.[10]

The National Association of Securities Dealers spun off the Nasdaq Stock Market in 2000 to
form a public company.

2000–present

The NASDAQ Composite index spiked in the late 1990s and then fell sharply as a result of
the dot-com bubble.
Studio

On March 10, 2000, the NASDAQ Composite stock market index peaked at 5,132.52, but fell
to 3,227 by April 17,[11] and in the following 30 months fell 78% from its peak.[12]

In a series of sales in 2000 and 2001, FINRA sold its stake in the Nasdaq.

On July 2, 2002 Nasdaq Inc. became a public company via an initial public offering.[13]

In 2006, the status of the Nasdaq Stock Market was changed from a stock market to a
licensed national securities exchange.[14]

In 2010, Nasdaq merged with OMX, a leading exchange operator in the Nordic countries,
expanded its global footprint, and changed its name to the NASDAQ OMX Group.[15]

To qualify for listing on the exchange, a company must be registered with the United States
Securities and Exchange Commission (SEC), must have at least three market makers
(financial firms that act as brokers or dealers for specific securities) and must meet minimum
requirements for assets, capital, public shares, and shareholders.

In February 2011, in the wake of an announced merger of NYSE Euronext with Deutsche
Börse, speculation developed that NASDAQ OMX and Intercontinental Exchange (ICE)
could mount a counter-bid of their own for NYSE. NASDAQ OMX could be[when?] looking to
acquire the American exchange's cash equities business, ICE the derivatives business. At the
time, "NYSE Euronext's market value was $9.75 billion. Nasdaq was valued at $5.78 billion,
while ICE was valued at $9.45 billion."[16] Late in the month, Nasdaq was reported to be
considering asking either ICE or the Chicago Mercantile Exchange to join in what would
probably have to be, if it proceeded, an $11–12 billion counterbid.[17]

In December 2005, NASDAQ acquired Instinet for $1.9 billion, retaining the Inet ECN and
subsequently selling the agency brokerage business to Silver Lake Partners and Instinet
management.[18][19][20]

The European Association of Securities Dealers Automatic Quotation System (EASDAQ)

was founded as a European equivalent to the Nasdaq Stock Market. It was purchased by
NASDAQ in 2001 and became NASDAQ Europe. In 2003, operations were shut down as a
result of the burst of the dot-com bubble.[21] In 2007, NASDAQ Europe was revived first as
Equiduct, and later that year, it was acquired by Börse Berlin.[22]
On June 18, 2012, Nasdaq OMX became a founding member of the United Nations
Sustainable Stock Exchanges Initiative on the eve of the United Nations Conference on
Sustainable Development (Rio+20).[23][24]

In November 2016, chief operating officer Adena Friedman was promoted to chief executive
officer, becoming the first woman to run a major exchange in the U.S.[25]

In 2016, Nasdaq earned $272 million in listings-related revenues.[26]

In October 2018, the SEC ruled that the New York Stock Exchange and Nasdaq did not
justify the continued price increases when selling market data.[27][28][29]

Quote availability
Nasdaq quotes are available at three levels:

 Level 1 shows the highest bid and lowest ask—inside quote.

 Level 2 shows all public quotes of market makers together with information of market
dealers wishing to buy or sell stock and recently executed orders.[30]
 Level 3 is used by the market makers and allows them to enter their quotes and
execute orders.[31]

Trading schedule
The Nasdaq Stock Market sessions, with times in the Eastern Time Zone are:

4:00 a.m. to 9:30 a.m. Extended hours trading session (premarket)

9:30 a.m. to 4:00 p.m. normal trading session

4:00 p.m. to 8:00 p.m. Extended hours trading session (postmarket)[32]

The Nasdaq Stock Market averages about 253 trading days per year.

Market tiers
The Nasdaq Stock Market has three different market tiers:

 Capital Market (small cap) is an equity market for companies that have relatively
small levels of market capitalization. Listing requirements for such "small cap"
companies are less stringent than for other Nasdaq markets that list larger companies
with significantly higher market capitalization.[33]
 Global Market (mid cap) is made up of stocks that represent the Nasdaq Global
Market. The Global Market consists of 1,450 stocks that meet Nasdaq's strict financial
and liquidity requirements, and corporate governance standards. The Global Market is
less exclusive than the Global Select Market.[34]
 Global Select Market (NASDAQ-GS large cap) is a market capitalization-weighted
index made up of US-based and international stocks that represent the Global Select
 Market Composite. The Global Select Market consists of 1,200 stocks that meet
Nasdaq's strict financial and liquidity requirements and corporate governance
standards. The Global Select Market is more exclusive than the Global Market. Every
October, the Nasdaq Listing Qualifications Department reviews the Global Market
Composite to determine if any of its stocks have become eligible for listing on the
Global Select Market.[35][36]

See also
 New York City portal

 ACT (NASDAQ)
 Advanced Computerized Execution System
 Directors Desk
 Economy of New York City
 List of stock exchange mergers in the Americas
 List of stock exchanges
 List of stock exchanges in the Americas
 NASDAQ futures
 Nasdaq, Inc.
 NASDAQ-100
 NASDAQ Financial-100
 United States corporate law

References
1.

 "Nasdaq Companies". Archived from the original on February 1, 2011.

  "Monthly Reports". World-Exchanges.org. World Federation of Exchanges. Archived
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  "Nasdaq – Business Solutions & Services". nasdaq.com. Archived from the original on
October 20, 2016.
  Frequently Asked Questions. NASDAQ.com. NASDAQ, n.d. Web. December 23, 2001.
Archived April 29, 2010, at the Wayback Machine
  Terrell, Ellen. "History of the American and Nasdaq Stock Exchanges". Library of
Congress. Archived from the original on April 14, 2013.
  KENNON, JOSHUA (March 26, 2019). "What Is the NASDAQ?". Dotdash.
  Gilpin, Kenneth N. (July 3, 1987). "Company News: An Erratic Quarter for Stock
Markets". The New York Times. ISSN 0362-4331. Archived from the original on August 1,
2017.
  WIDDER, PAT (May 24, 1992). "NASDAQ HAS EYE ON NEXT 100 YEARS". Chicago
Tribune.
  "Feb 8, 1971 CE: 'Stock Market for the Next 100 Years' Opens". National Geographic.
  Odekon, Mehmet (March 17, 2015). Booms and Busts: An Encyclopedia of Economic
History from the First Stock Market Crash of 1792 to the Current Global Economic Crisis:
An Encyclopedia of Economic History from the First Stock Market Crash of 1792 to the
Current Global Economic Crisis. Routledge. ISBN 9781317475750. Archived from the
original on August 3, 2017.
  "NASDAQ Composite daily index". Archived from the original on November 22, 2010.
  Glassman, James K. (February 11, 2015). "3 Lessons for Investors From the Tech
Bubble". Kiplinger's Personal Finance. Archived from the original on April 15, 2017.
  "INVESTOR FAQS". Nasdaq.
  Walsh, Michelle. "Nasdaq Stock Market Becomes A National Securities Exchange;
Changes Market Designations". Archived from the original on December 17, 2013.
  Lucchetti, Aaron; MacDonald, Alistair (May 26, 2007). "Nasdaq Lands OMX for $5.7
Billion; Are More Merger Deals on the Way?". The Wall Street Journal. ISSN 0099-9660.
Archived from the original on July 31, 2017.
  De la Merced, Michael J., "Nasdaq and ICE Hold Talks Over Potential N.Y.S.E. Bid"
Archived January 20, 2012, at the Wayback Machine, The New York Times Dealbook,
February 18, 2011.
  Fraser, Michelle E., "Nasdaq May Ask CME or ICE for Help in NYSE Counterbid, WSJ
Says" Archived July 29, 2014, at the Wayback Machine, Bloomberg News, February 26,
2011.
  "NASDAQ COMPLETES ACQUISITION OF INET" (Press release). Nasdaq. December
8, 2005.
  Authers, John (December 8, 2005). "Nasdaq completes purchase of Instinet exchange".
Financial Times.
  "Nasdaq to Acquire Instinet in $1.9 Billion Deal". The New York Times. April 22, 2005.
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  "Nasdaq Might Shut Down German Exchange". Deutsche Welle. August 11, 2003.
  "Easdaq Makes A Comeback As Equiduct". Archived from the original on January 6,
2011.
  "SUSTAINABLE STOCK EXCHANGES INITIATIVE: EXCHANGES LISTING OVER
4,600 COMPANIES COMMIT TO PROMOTING SUSTAINABILITY" (Press release).
GlobeNewswire. June 18, 2012.
  JUNGCURT, STEFAN (June 29, 2012). "Five Stock Exchanges Commit to Promoting
Sustainability". International Institute for Sustainable Development.
  "Nasdaq's New CEO Attributes Her Success to an 'Eclectic' Career Path". Fortune.
November 15, 2016. Archived from the original on November 17, 2016.
 Osipovich, Alexander (October 26, 2017). "Startup Exchange Cleared to Take on NYSE,
Nasdaq for Stock Listings
 ". The Wall Street Journal. Archived from the original on October 26, 2017.
  Osipovich, Alexander; Michaels, Dave; Morgenson, Gretchen (October 16, 2018). "SEC
Ruling Takes Aim at Stock-Exchange Profits". The Wall Street Journal.
  "SEC rules NYSE and Nasdaq did not justify data fee increases". Financial Times.
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  Michaels, Dave (October 19, 2018). "NYSE, Nasdaq Take It on the Chin in
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  "Nasdaq Level III Quote". Archived from the original on April 13, 2014.
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  "Definition of 'Nasdaq Global Market Composite'". Investopedia. Archived from the
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36.  Pinto, Jerald E.; Henry, Elaine; Robinson, Thomas R.; Stowe, John D. (2010).
Equity Asset Valuation. CFA Institute Investment Series. 27 (2 ed.). John Wiley &
Sons. p. 6. ISBN 9780470579657. Archived from the original on May 10, 2013. [...]
NASDAQ-GS stands for 'Nasdaq Global Select Market,' [...]

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