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Nasdaq

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The Nasdaq is a major American stock exchange.

It is the second-largest exchange by market capitalization in the United States. Nasdaq is also notable for being the first fully electronic stock market. While some older exchanges use physical trading floors, Nasdaq relies on computer systems. It is based in Manhattan, New York City. The exchange is one of the most active trading venues in the country by volume. It serves as a primary listing location for many technology companies. Many foreign firms also trade here, with China and Israel being the largest foreign sources.

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Flag of the People's Republic of China
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Flag of Israel

Trading on the platform involves a digital process using quotes. A quote is the listed price of a stock on the exchange. It consists of two parts: the bid and the offer. The bid is the price a buyer is willing to pay. The offer is the price a seller will accept. The Nasdaq provides these quotes at three distinct levels. Level 1 shows the inside quote, which is the highest bid and lowest ask. Level 2 shows all public quotes from market makers. Market makers are financial firms that act as brokers or dealers for specific securities. Level 3 is a specialized view used by market makers to enter quotes and execute orders.

The exchange is organized into three specific market tiers. These tiers are based on the size and requirements of the companies. The Nasdaq Capital Market is for companies with smaller market capitalization. It has less stringent listing requirements than the other tiers. The Nasdaq Global Market is the middle tier. It contains 1,366 listings that meet strict financial, liquidity, and governance standards. The Nasdaq Global Select Market is the most exclusive tier. It is a market capitalization-weighted index for the largest companies. As of December 31, 2024, the Global Select Market held 1,383 listings. The Nasdaq also manages several indices, such as the Nasdaq Composite and the Nasdaq-100.

Nasdaq has a long history of technological innovation. It was founded in 1971 by the National Association of Securities Dealers (NASD). The name is an acronym for National Association of Securities Dealers Automated Quotations. On February 8, 1971, it began operations as a quotation system. At that time, trades were still executed by telephone. Electronic execution was not introduced until 1984. Intel Corporation was one of the first major corporations to list on the exchange. Other early companies included Comcast and Applied Materials. In 1998, Nasdaq became the first U.S. stock market to offer online trading.

Over the decades, Nasdaq has grown through many changes and acquisitions. In 2002, Nasdaq, Inc. became a public company through an initial public offering. It trades under the ticker symbol NDAQ. In 2007, the company merged with OMX, an exchange operator in the Nordic countries.

This merger expanded its global footprint. Nasdaq also acquired the Philadelphia Stock Exchange in 2007. This was the oldest stock exchange in the United States. The exchange has also focused on sustainability. In 2012, it became a founding member of the United Nations Sustainable Stock Exchanges Initiative. In 2019, it created the Sustainable Bond Network to increase transparency for green and social bonds.

The scale of the Nasdaq is quite massive. As of late 2024, the exchange hosted 4,075 listed companies. It averages about 253 trading days per year. The volume of activity is very high, with approximately 1.8 billion trades occurring every day. This volume is significantly higher than the New York Stock Exchange (NYSE). Listing fees also vary by tier. Companies in the Capital Market pay between $53,000 and $86,000. Companies in the Global or Global Select Markets pay between $56,000 and $193,000. These numbers show the high level of professional activity on the platform.

Nasdaq continues to evolve with new technology. In 2025, it announced a partnership with Amazon Web Services to launch Nasdaq Eqlipse Trading. This is a cloud-based platform used by exchanges in South Africa, Mexico, and the Philippines.

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Flag of South Africa

In 2026, the SEC approved a proposal to allow certain stocks to be traded in tokenized form. This helps integrate blockchain-based settlements into mainstream markets. The exchange also plans to introduce 24-hour trading, five days a week, during the second half of 2026. This move responds to the growing global demand for U.S. equities. These developments show how Nasdaq connects modern finance with digital tools.

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