Nasdaq is a global electronic marketplace for buying and selling securities. It is the second-largest stock exchange in the world for investors looking to buy and sell shares of stock. The name "Nasdaq" was initially an acronym for the National Association of Securities Dealers Automated Quotations. It was founded in 1971 by the National Association of Securities Dealers (NASD), now known as the Financial Industry Regulatory Authority. On February 8, 1971, the Nasdaq stock market began operations as the worlds first electronic stock market. At first, it was merely a "quotation system" and did not provide a way to perform electronic trades. Over the years, it became more of a stock market by adding trade and volume reporting and automated trading systems.
The Nasdaq Stock Market operates 29 markets, one clearinghouse, and five central securities depositories in the United States and Europe. Its trading technology is used by 100 exchanges in 50 countries. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities, and the Nasdaq Smallcap Market. Most of the world's technology giants are listed on the Nasdaq.
Investors cannot trade the Nasdaq index because it is a representation of the performance of a grouping of stocks in the form of a mathematical average. The Nasdaq is also an exchange where investors can buy and sell stocks. The Nasdaq Stock Market is the most active stock trading venue in the US by volume, and ranked second on the list of stock exchanges by market capitalization of shares traded, behind the New York Stock Exchange.
