The NASDAQ In Simple Steps...
Created in 1971, the Nasdaq was the world's first electronic stock market and is now the largest U.S. electronic stock exchange. With approximately 3,300 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market.
It is home to companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. Stocks traded are usually the smaller, more volatile corporations and include many start up companies. Although stocks trading here must meet certain minimum requirements, those requirements for size, profitability etc. and less rigid than the NYSE.
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The initials stand for National Association of Security Dealers Automated Quotations. It is a computer operated system owned by the NASD that provides dealers with price quotations for stocks and securities traded through the NASDAQ.
On July 17, 1995 the NASDAQ stock index closed above the 1,000 mark for the first time. The index peaked at 5132.52 on March 10, 2000, which signaled the beginning of the end of the dot-com boom.
Indices of The Nasdaq Stock Market:
The following common securities are eligible for index inclusions. There is no distinction between either the National Market vs. the SmallCap Market, or domestic US vs. Non-US securities.
Security Class
American Depositary Receipts (ADRs)
Common
Limited Partnership Interests
Ordinary Shares
Real Estate Investment Trusts (REITs)
Shares of Beneficial Interest (SBIs)
Tracking Stocks
The following issue types are not eligible for inclusion in the indices: closed-end funds, convertible debentures, exchange traded funds, preferred stocks, rights, warrants, units and other derivative securities.
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