NASDAQ Market — main technology exchange of the world
It is believed that America is the heart of stock trading. It is in the USA that the largest and most influential exchanges of the world are located: the New York and American
stock exchanges, as well as the NASDAQ Market. The latter is known for operations with shares of technological and IT-companies, whose quotes traditionally have the greatest weight. In total, securities of over 3,000 global companies are traded on this exchange.
The history of the emergence and development of the NASDAQ Market
In the late 30s of the XXI century, the US Congress published the so-called “Maloney Act.” According to him, all brokers who do not have membership in the exchange were obliged to join the organization SRO created at that time. Her responsibilities in the future included controlling the over-the-counter market.
SRO was formed in a couple of years under the name National Association of Securities Dealers (NASD) or the National Association of Securities Dealers. However, another 30 years passed from that point to the start of the NASDAQ.
In 1968, the Securities and Exchange Commission, by order of the US Congress, conducted investigations into the deplorable state of the over-the-counter securities market. The fact is that at that time the company’s financial reports preferred not to publish at all, or they did it extremely rarely. At the same time, the over-the-counter sphere had low liquidity. To change this state of affairs, the NASDAQ was created, that is, an automated securities market system. She appeared on February 8, 1971, on the same day the first transactions took place.
What are the indexes NASDAQ Market?
As the NASDAQ Market evolved, it evolved from a regular board with announcement of quotes to a full-fledged stock exchange with its own indices and markets.
In total, the site has more than 10 indices, the main of which are the following three:
Nasdaq Composite Index. It includes all companies listed on the exchange.
The Nasdaq National Market Composite Index is analogous to the previous one, only on the condition that it takes into account only US companies whose shares are traded on the NASDAQ.
Nasdaq-100 Index, which is calculated on the basis of the market capitalization of hundreds of the largest non-financial companies with membership in the stock exchange.
How is trading held on the stock exchange?
Work on the site begins in the morning at 9:30. Recent operations must be completed by 4:00 pm EST. However, there is also a post-trading period, and then transactions can be carried out until 20:00.
Brokers carry out all trading on the NASDAQ Market. Market makers are responsible for publishing quotes and supporting liquidity of shares. NASDAQ stock quotes are formed by comparing market maker quotes and alternative trading systems.
There are also three levels of exchange quotes. The first shows the highest possible price and lowest bid. Second level shows traders’ quotes, as well as their desire to buy or sell stocks from recent deals. Mainly market traders use the third level to enter with their quotas for order execution.
