{"id":142122,"date":"2023-12-19T11:36:18","date_gmt":"2023-12-19T11:36:18","guid":{"rendered":"https:\/\/www.techopedia.com\/?post_type=definition&p=142122"},"modified":"2023-12-19T17:29:57","modified_gmt":"2023-12-19T17:29:57","slug":"nasdaq-stock-exchange","status":"publish","type":"definition","link":"https:\/\/www.techopedia.com\/definition\/nasdaq-stock-exchange","title":{"rendered":"Nasdaq Stock Exchange"},"content":{"rendered":"

What is the Nasdaq Stock Exchange?<\/span><\/h2>\n

The term Nasdaq is an acronym that refers to the National Association of Securities Dealers Automated Quotations (NASDAQ). It is the second-largest stock exchange in the world, measured by market capitalization<\/a> and trading volume, and it is the home for the equity instruments of many of the world\u2019s largest companies.<\/p>\n

The Nasdaq started operating in February 1971. It provides data on stock<\/a> prices and facilitates a venue for broker-dealers to exchange securities<\/a>. Over time, this exchange became a go-to institution for thousands of companies that have found a way to raise capital cheaply and easily, regardless of their size.<\/p>\n

Techopedia Explains<\/h3>\n

Same as other exchanges, the Nasdaq imposes some minimum listing requirements that need to be met for companies to offer shares to the public. All of the trading within the Nasdaq occurs electronically.<\/p>\n

This makes it different from other exchanges like the New York Stock Exchange<\/a> (NYSE), where a hybrid model prevails with human traders still having a presence on the trading floor to oversee the exchange\u2019s operations and execute transactions on behalf of the institutions they represent.<\/p>\n

The word Nasdaq in financial jargon can refer either to the exchange or the well-known Nasdaq Composite or Nasdaq 100 indexes<\/a>, both of which track the performance of the largest companies listed in the exchange.<\/p>\n

More than 3,000 companies list their shares on the Nasdaq<\/a>. In part because of the way the Nasdaq has embraced technological innovation in its trading platform, the stock exchange has attracted many of the world’s leading companies in the tech sector, as well as businesses in other cutting-edge industries like biotechnology and renewables.<\/p>\n

How Does the Nasdaq Stock Exchange Work?<\/span><\/h2>\n

The Nasdaq stock exchange works through a network of computers and technological infrastructure that allows stock trading to happen electronically. This fully automated system links various market participants, including individual investors, brokerage firms, and market makers.<\/p>\n

Companies that want to have their stocks listed on the Nasdaq must meet certain financial, governance, and liquidity standards before their stocks can start trading on the exchange.<\/p>\n

Some of the minimum requirements<\/a> to be listed in the Nasdaq Global Select Market include the following:<\/p>\n