Nasdaq Stock Market Is The Market Of The Future

Nasdaq Stock Market Is The Market Of The Future

By: Mark Crisp

The National Association of Securities Dealers Automated Quotations system (NASDAQ) is a securities market that was started in the US on February 8, 1971. Owned and managed by a company appropriately named The Nasdaq Stock Market, Inc., it is the largest digital, on-screen online trading stock market located in the US.

In 1971, NASDAQ became the world's first exclusively electronic trading market for equities, and it now serves millions of people all over the world. NASDAQ has become the United States' most rapidly growing stock market, and the market with the most listings from outside the US. It now leads all American markets in trading volume and in companies listed. The most frequently mentioned index, the NASDAQ Composite, has been published each day for 36 years. The large-cap NASDAQ 100 Index was introduced in 1985, as was the Financial Index covering stocks in that sector.

Dating from the 1st March 07 almost 5100 companies which include small and growing companies and a lot of large corporations as well which became household names, sell their securities using this electronic marketplace. About 2 out of 7 shared traded on the American financial market occurs through this system. For Tape A or NYSE listed security, it is about the 14-15 % of all shared trades. For Tape C ones, it is about 45 to 98 % of the whole trading quote.

NASDAQ Stock Market has a sliding fee system based on how much trading volume the market participant executes on the NASDAQ system. Higher the volume executed on the system, lower is the liquidity removal fees and more favorable is the added-liquidity rebates.

The online trading market operates in a system under which 'Market Makers' compete with each other for the best buying and selling prices. Market Makers provide depth of market to companies by standing ready to commit capital to stocks in which they are registered and by providing immediate and continuous trading in a company's stock. Buyer and sellers are willing to trade more frequently and investors are more willing to hold securities, because they know they can sell them more readily.

The quotes are available at three levels. Level I shows the highest bid and lowest offer - the inside quote. Level II shows all public quotes of market makers together with information of market makers wishing to sell or buy stock and recently executed orders. Level III is used by the market makers and allows them to enter their quotes and execute orders.

National Association of Securities Dealers Automated Quotations system (NASDAQ) is the world's first exclusively electronic trading market for equities. It now leads all American markets in trading volume. Almost 5,100 companies trade their securities on NASDAQ. The nasdaq stock market uses a sliding fee method based on the quantity of trading.

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