Last updated

Nasdaq Stock Market
NASDAQ Logo.svg
NASDAQ Composite Index.webp
Type Stock exchange
Location New York City, U.S.
Coordinates 40°45′23″N73°59′09″W / 40.7565°N 73.98576°W / 40.7565; -73.98576
FoundedFebruary 8, 1971;53 years ago (1971-02-08)
Owner Nasdaq, Inc.
Currency United States dollar
No. of listingsDecrease2.svg 4,061 (Feb 2024) [1]
Market cap Increase2.svgUS$23.414 trillion (Feb 2024) [2]
Nasdaq laea location map.svg
Stock exchanges (listing venues) owned by Nasdaq, Inc.
Nasdaq compared to corporate profits
.mw-parser-output .legend{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .legend-color{display:inline-block;min-width:1.25em;height:1.25em;line-height:1.25;margin:1px 0;text-align:center;border:1px solid black;background-color:transparent;color:black}.mw-parser-output .legend-text{}
Corporate profits after tax
NASDAQ Index Nasdaq compared to corporate profits.webp
Nasdaq compared to corporate profits
  Corporate profits after tax
  NASDAQ Index

The Nasdaq Stock Market ( /ˈnæzdæk/ ; National Association of Securities Dealers Automated Quotations) is an American stock exchange based in New York City. It is the most active stock trading venue in the U.S. by volume, [3] and ranked second on the list of stock exchanges by market capitalization of shares traded, behind the New York Stock Exchange. [4] The exchange platform is owned by Nasdaq, Inc., [5] which also owns the Nasdaq Nordic stock market network and several U.S.-based stock and options exchanges.




Former logo used from 1971 to 2014 NASDAQ.svg
Former logo used from 1971 to 2014

"Nasdaq" was initially an acronym for the National Association of Securities Dealers Automated Quotations. [6] It was founded in 1971 by the National Association of Securities Dealers (NASD), now known as the Financial Industry Regulatory Authority. [7] On February 8, 1971, the Nasdaq stock market began operations as the world's first electronic stock market. [7] At first, it was merely a "quotation system" and did not provide a way to perform electronic trades. [8]

The NASDAQ Stock Market eventually assumed the majority of major trades that had been executed by the over-the-counter (OTC) system of trading, but there are still many securities traded in this fashion. As late as 1987, the Nasdaq exchange was still commonly referred to as "OTC" in media reports [9] and also in the monthly Stock Guides (stock guides and procedures) issued by Standard & Poor's Corporation. [10] Over the years, it became more of a stock market by adding trade and volume reporting and automated trading systems. In 1981, Nasdaq traded 37% of the U.S. securities markets' total of 21 billion shares. By 1991, Nasdaq's share had grown to 46%. [11] In 1992, the Nasdaq Stock Market joined with the London Stock Exchange to form the first intercontinental linkage of capital markets. [12]

In 1996, the SEC issued a report alleging that Nasdaq market makers fixed prices by avoiding "odd-eighths" quotes (at the time, stock prices were quoted in increments of an eighth of a dollar) to artificially widen spreads. The report was followed by a new set of rules for how Nasdaq handled orders. [13] :102,126

In 1998, it became the first stock market in the United States to trade online, using the slogan "the stock market for the next hundred years". [14] The Nasdaq Stock Market attracted many companies during the dot-com bubble.

Its main index is the NASDAQ Composite, which has been published since its inception. The QQQ exchange-traded fund tracks the large-cap NASDAQ-100 index, which was introduced in 1985 alongside the NASDAQ Financial-100 Index, which tracks the largest 100 companies in terms of market capitalization.


During the dot-com bubble, the NASDAQ Composite index spiked in the late 1990s. It then fell sharply as the bubble burst. Nasdaq Composite dot-com bubble.svg
During the dot-com bubble, the NASDAQ Composite index spiked in the late 1990s. It then fell sharply as the bubble burst.
Studio NASDAQ Market Site 201506.jpg

On March 10, 2000, the NASDAQ Composite stock market index peaked at 5,132.52, but fell to 3,227 by April 17, [15] and, in the following 30 months, fell 78% from its peak. [16]

In a series of sales in 2000 and 2001, FINRA sold its stake in the Nasdaq. On July 2, 2002, Nasdaq Inc. became a public company via an initial public offering. [17] In 2006, the status of the Nasdaq Stock Market was changed from a stock market to a licensed national securities exchange. [18] In 2007, it merged with OMX, a leading exchange operator in the Nordic countries, expanded its global footprint, and changed its name to the NASDAQ OMX Group. [19]

To qualify for listing on the exchange, a company must be registered with the United States Securities and Exchange Commission (SEC), must have at least three market makers (financial firms that act as brokers or dealers for specific securities) and must meet minimum requirements for assets, capital, public shares, and shareholders.

In February 2011, in the wake of an announced merger of NYSE Euronext with Deutsche Börse , speculation developed that NASDAQ OMX and Intercontinental Exchange (ICE) could mount a counter-bid of their own for NYSE. NASDAQ OMX could be[ when? ] looking to acquire the American exchange's cash equities business, ICE the derivatives business. At the time, "NYSE Euronext's market value was $9.75 billion. Nasdaq was valued at $5.78 billion, while ICE was valued at $9.45 billion." [20] Late in the month, Nasdaq was reported to be considering asking either ICE or the Chicago Mercantile Exchange to join in what would probably have to be, if it proceeded, an $11–12 billion counterbid. [21]

In December 2005, NASDAQ acquired Instinet for $1.9 billion, retaining the Inet ECN and subsequently selling the agency brokerage business to Silver Lake Partners and Instinet management. [22] [23] [24]

The European Association of Securities Dealers Automatic Quotation System (EASDAQ) was founded as a European equivalent to the Nasdaq Stock Market. It was purchased by NASDAQ in 2001 and became NASDAQ Europe. In 2003, operations were shut down as a result of the burst of the dot-com bubble. [25] In 2007, NASDAQ Europe was revived first as Equiduct and was acquired by Börse Berlin later that year. [26]

On June 18, 2012, Nasdaq OMX became a founding member of the United Nations Sustainable Stock Exchanges Initiative on the eve of the United Nations Conference on Sustainable Development (Rio+20). [27] [28]

In November 2016, chief operating officer Adena Friedman was promoted to chief executive officer, becoming the first woman to run a major exchange in the U.S. [29]

In 2016, Nasdaq earned $272 million in listings-related revenues. [30]

In October 2018, the SEC ruled that the New York Stock Exchange and Nasdaq did not justify the continued price increases when selling market data. [31] [32] [33]

In December 2020, NASDAQ announced that it would strip its indexes of four Chinese companies in response to Executive Order 13959. [34]

Contract specifications

Nasdaq 100 futures are traded on the CME (Chicago Mercantile Exchange) while its derivatives, E-Mini Nasdaq 100 and Micro E-Mini Nasdaq 100 futures are traded on the EMiniCME. Below are the contract specifications for the Nasdaq 100 and derivatives.

Contract Specifications
Nasdaq 100 (NDA) [35] E-Mini Nasdaq 100 (NQ/ENQ) [36] Micro E-Mini Nasdaq (MNQ) [37]
Contract Size:$100 X Nasdaq 100 Index$20 X Nasdaq 100 Index$2 X Nasdaq 100 Index
Tick Size:
Tick Value:25 USD5 USD0.5 USD
Decimal Place:222

Quote availability

Nasdaq quotes are available at three levels:

Trading schedule

The Nasdaq Stock Market sessions, with times in the Eastern Time Zone are:

7:00 a.m. to 9:30 a.m.: extended-hours trading session (premarket)

9:30 a.m. to 4:00 p.m.: normal trading session

4:00 p.m. to 8:00 p.m.: extended-hours trading session (postmarket) [40]

The Nasdaq Stock Market averages about 253 trading days per year.[ citation needed ]

Market tiers

The Nasdaq Stock Market has three different market tiers:

Difference between NYSE and Nasdaq

After the NYSE, Nasdaq is the second largest stock exchange in the United States with a market capitalization of $19 trillion, which is about $5.5 trillion less than the NYSE. [45] [46] [47] Nasdaq is a much younger organization than the NYSE, having been founded in just 1971. [48] [49] In addition to age and market capitalization, there are other key differences between the two exchanges:

See also

Related Research Articles

<span class="mw-page-title-main">New York Stock Exchange</span> American stock exchange

The New York Stock Exchange is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is the largest stock exchange in the world by market capitalization.

<span class="mw-page-title-main">S&P 500</span> American stock market index

The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices and includes approximately 80% of the total market capitalization of U.S. public companies, with an aggregate market cap of more than $43 trillion as of January 2024.

<span class="mw-page-title-main">Nasdaq-100</span> Stock market index

The Nasdaq-100 (^NDX) is a stock market index made up of equity securities issued by 100 of the largest non-financial companies listed on the Nasdaq stock exchange. It is a modified capitalization-weighted index. The stocks' weights in the index are based on their market capitalizations, with certain rules capping the influence of the largest components. It is limited to companies from a single exchange, and it does not have any financial companies. The financial companies are in a separate index, the Nasdaq Financial-100.

<span class="mw-page-title-main">Singapore Exchange</span> Investment holding company in Singapore

Singapore Exchange Limited is a Singapore-based exchange conglomerate, operating equity, fixed income, currency and commodity markets. It provides a range of listing, trading, clearing, settlement, depository and data services. SGX Group is also a member of the World Federation of Exchanges and the Asian and Oceanian Stock Exchanges Federation. it is ASEAN's second largest market capitalization after Indonesia Stock Exchange at US$585.97 billion as of September 2023.

<span class="mw-page-title-main">Shanghai Stock Exchange</span> Stock exchange in Shanghai, China

The Shanghai Stock Exchange is a stock exchange based in the city of Shanghai, China. It is one of the three stock exchanges operating independently in mainland China, the others being the Beijing Stock Exchange and the Shenzhen Stock Exchange. The Shanghai Stock Exchange is the world's third largest stock market by market capitalization. It is also Asia's biggest stock exchange. Unlike the Hong Kong Stock Exchange, the Shanghai Stock Exchange is still not entirely open to foreign investors and often affected by the decisions of the central government, due to capital account controls exercised by the Chinese mainland authorities.

An electronic communication network (ECN) is a type of computerized forum or network that facilitates the trading of financial products outside traditional stock exchanges. An ECN is generally an electronic system that widely disseminates orders entered by market makers to third parties and permits the orders to be executed against in whole or in part. The primary products that are traded on ECNs are stocks and currencies. ECNs are generally passive computer-driven networks that internally match limit orders and charge a very small per share transaction fee.

<span class="mw-page-title-main">Nasdaq, Inc.</span> American multinational financial services corporation

Nasdaq, Inc. is an American multinational financial services corporation that owns and operates three stock exchanges in the United States: the namesake Nasdaq stock exchange, the Philadelphia Stock Exchange, and the Boston Stock Exchange, and seven European stock exchanges: Nasdaq Copenhagen, Nasdaq Helsinki, Nasdaq Iceland, Nasdaq Riga, Nasdaq Stockholm, Nasdaq Tallinn, and Nasdaq Vilnius. It is headquartered in New York City, and its president and chief executive officer is Adena Friedman.

On October 27, 1997, a global stock market crash was caused by an economic crisis in Asia, the "Asian contagion", or Tom Yum Goong crisis. The point loss that the Dow Jones Industrial Average suffered on this day currently ranks as the 18th biggest percentage loss since the Dow's creation in 1896. This crash is considered a "mini-crash" because the percentage loss was relatively small compared to some other notable crashes. After the crash, the markets still remained positive for 1997, but the "mini-crash" may be considered as the beginning of the end of the 1990s economic boom in the United States and Canada, as both consumer confidence and economic growth were mildly reduced during the winter of 1997–1998, and when both returned to pre-October levels, they began to grow at an even slower pace than before the crash.

<span class="mw-page-title-main">NYSE Arca</span> American stock exchange

NYSE Arca, previously known as ArcaEx, an abbreviation of Archipelago Exchange, is an exchange on which both stocks and options are traded. It was owned by Intercontinental Exchange. It merged with the New York Stock Exchange in 2006 and now operates as a subsidiary of the NYSE Group, Inc. It is headquartered in Chicago.

A capitalization-weightedindex, also called a market-value-weighted index is a stock market index whose components are weighted according to the total market value of their outstanding shares. Every day an individual stock's price changes and thereby changes a stock index's value. The impact that individual stock's price change has on the index is proportional to the company's overall market value, in a capitalization-weighted index. In other types of indices, different ratios are used.

<span class="mw-page-title-main">Options Clearing Corporation</span> Financial services business

Options Clearing Corporation (OCC) is a United States clearing house based in Chicago. It specializes in equity derivatives clearing, providing central counterparty (CCP) clearing and settlement services to 16 exchanges. It was started by Wayne Luthringshausen and carried on by Michael Cahill. Its instruments include options, financial and commodity futures, security futures, and securities lending transactions.

<span class="mw-page-title-main">Intercontinental Exchange</span> American exchange and clearing house company

Intercontinental Exchange, Inc. (ICE) is an American company formed in 2000 that operates global financial exchanges and clearing houses and provides mortgage technology, data and listing services. Listed on the Fortune 500, S&P 500, and Russell 1000, the company owns exchanges for financial and commodity markets, and operates 12 regulated exchanges and marketplaces. This includes ICE futures exchanges in the United States, Canada, and Europe; the Liffe futures exchanges in Europe; the New York Stock Exchange; equity options exchanges; and OTC energy, credit, and equity markets.

<span class="mw-page-title-main">Jamaica Stock Exchange</span> Jamaican stock market index

The Jamaica Stock Exchange is the principal stock exchange of Jamaica, also known as JSE. Incorporated in 1968, JSE opened in 1969 in Kingston, Jamaica. Today, the JSE is one of the largest stock exchanges in the Caribbean by size and market capitalization. As of 30 September 2019, there is a total number of 85 companies and 120 securities listed to the JSE, and a market capitalization of just over JM$2 trillion. The Jamaica Stock Exchange is composed of multiple markets: Main Market, Junior Market, USD Market, and Bond Market. The JSE is also recognized as one of the most sector-diverse exchanges in the Caribbean. The key sectors include banking and finance, retail, manufacturing, insurance, leisure, communications, conglomerate, and services and real estate. The current chairman is Ian McNaughton and the deputy chairman is Gary Peart. The managing director is Marlene Street Forrest.

The NYSE Composite (^NYA) is a stock market index covering all common stock listed on the New York Stock Exchange, including American depositary receipts, real estate investment trusts, tracking stocks, and foreign listings. It includes corporations in each of the ten industries listed in the Industry Classification Benchmark. It uses free-float market cap weighting.

In corporate finance, a listing refers to the company's shares being on the list of stock that are officially traded on a stock exchange. Some stock exchanges allow shares of a foreign company to be listed and may allow dual listing, subject to conditions.

Instinet Incorporated is an institutional, agency-model broker that also serves as the independent equity trading arm of its parent, Nomura Group. It executes trades for asset management firms, hedge funds, insurance companies, mutual funds and pension funds. Headquartered in New York City, the company provides sales trading services and trading technologies such as the Newport EMS, algorithms, trade cost analytics, commission management, independent research and dark pools.

The Russell Top 200 Index measures the performance of the 200 largest companies in the Russell 1000 Index, with a weighted average market capitalization of $186 billion. The median capitalization is $48 billion; the smallest company in the index has an approximate capitalization of $14 billion.

The Financial Instrument Global Identifier (FIGI) is an open standard, unique identifier of financial instruments that can be assigned to instruments including common stock, options, derivatives, futures, corporate and government bonds, municipals, currencies, and mortgage products. Also see: Open Data

For three hours on August 22, 2013, trading was halted on the Nasdaq Stock Market. Trading on the exchange stopped at 12:14 pm and resumed at 3:25 pm, with 35 minutes left of trading for the day. One week after the trading halt NASDAQ OMX credited the freeze to an overloading of the Securities Information Processor (SIP) caused by reconnection issues with the New York Stock Exchange Arca. The freeze received substantial media coverage and generated discussions on the security of increasingly technologically advanced stock exchanges. The event coined the term "flash freeze" following the earlier "flash crash" on May 6, 2010.


  1. "Nasdaq Companies" . Retrieved March 18, 2024.
  2. "Market Statistics – Focus". World Federation of Exchanges. March 2024. Retrieved March 18, 2024.
  3. "U.S. Equities Market Volume Summary".
  4. "Monthly Reports". World Federation of Exchanges. Archived from the original on August 17, 2014.
  5. "Nasdaq – Business Solutions & Services". Archived from the original on October 20, 2016. Retrieved June 16, 2016.
  6. Frequently Asked Questions. NASDAQ, n.d. Web. December 23, 2001. Archived April 29, 2010, at the Wayback Machine
  7. 1 2 Terrell, Ellen. "History of the American and Nasdaq Stock Exchanges". Library of Congress. Archived from the original on April 14, 2013.
  8. Kennon, Joshua (March 26, 2019). "What Is the NASDAQ?". Dotdash .
  9. Gilpin, Kenneth N. (July 3, 1987). "Company News: An Erratic Quarter for Stock Markets" . The New York Times . ISSN   0362-4331. Archived from the original on August 1, 2017.
  10. Salinger, Lawrence M. (June 14, 2013). Encyclopedia of White-Collar and Corporate Crime. SAGE Publications. ISBN   978-1-4522-7616-8.
  11. Widder, Pat (May 24, 1992). "NASDAQ Has Eye On Next 100 Years". Chicago Tribune .
  12. Odekon, Mehmet (March 17, 2015). Booms and Busts: An Encyclopedia of Economic History from the First Stock Market Crash of 1792 to the Current Global Economic Crisis: An Encyclopedia of Economic History from the First Stock Market Crash of 1792 to the Current Global Economic Crisis. Routledge. ISBN   9781317475750. Archived from the original on August 3, 2017.
  13. Patterson, Scott (2012). Dark Pools: High-Speed Traders, A.I. Bandits, and the Threat to the Global Financial System. Crown Publishing. ISBN   978-0307887177.
  14. "Feb 8, 1971 CE: 'Stock Market for the Next 100 Years' Opens". National Geographic. Archived from the original on July 19, 2016. Retrieved September 16, 2019.
  15. "NASDAQ Composite daily index". Archived from the original on November 22, 2010.
  16. Glassman, James K. (February 11, 2015). "3 Lessons for Investors From the Tech Bubble". Kiplinger's Personal Finance . Archived from the original on April 15, 2017.
  17. "INVESTOR FAQS". Nasdaq.
  18. Walsh, Michelle. "Nasdaq Stock Market Becomes A National Securities Exchange; Changes Market Designations". Archived from the original on December 17, 2013.
  19. Lucchetti, Aaron; MacDonald, Alistair (May 26, 2007). "Nasdaq Lands OMX for $5.7 Billion; Are More Merger Deals on the Way?". The Wall Street Journal . ISSN   0099-9660. Archived from the original on July 31, 2017.
  20. De la Merced, Michael J., "Nasdaq and ICE Hold Talks Over Potential N.Y.S.E. Bid" Archived January 20, 2012, at the Wayback Machine , The New York Times Dealbook, February 18, 2011.
  21. Fraser, Michelle E., "Nasdaq May Ask CME or ICE for Help in NYSE Counterbid, WSJ Says" Archived July 29, 2014, at the Wayback Machine , Bloomberg News, February 26, 2011.
  22. "NASDAQ Completes Acquisition of Inet" (Press release). Nasdaq. December 8, 2005.
  23. Authers, John (December 8, 2005). "Nasdaq completes purchase of Instinet exchange". Financial Times . Archived from the original on December 10, 2022.
  24. "Nasdaq to Acquire Instinet in $1.9 Billion Deal" . The New York Times . April 22, 2005. ISSN   0362-4331.
  25. "Nasdaq Might Shut Down German Exchange". Deutsche Welle . August 11, 2003.
  26. "Easdaq Makes A Comeback As Equiduct". Archived from the original on January 6, 2011. Retrieved February 3, 2011.
  27. "Sustainable Stock Exchanges Initiative: Exchanges Listing Over 4,600 Companies Commit to Promoting Sustainability" (Press release). GlobeNewswire. June 18, 2012. Archived from the original on December 6, 2019. Retrieved September 16, 2019.
  28. Jungcurt, Stefan (June 29, 2012). "Five Stock Exchanges Commit to Promoting Sustainability". International Institute for Sustainable Development .
  29. "Nasdaq's New CEO Attributes Her Success to an 'Eclectic' Career Path". Fortune . November 15, 2016. Archived from the original on November 17, 2016.
  30. Osipovich, Alexander (October 26, 2017). "Startup Exchange Cleared to Take on NYSE, Nasdaq for Stock Listings" . The Wall Street Journal . Archived from the original on October 26, 2017.
  31. Osipovich, Alexander; Michaels, Dave; Morgenson, Gretchen (October 16, 2018). "SEC Ruling Takes Aim at Stock-Exchange Profits" . The Wall Street Journal .
  32. "SEC rules NYSE and Nasdaq did not justify data fee increases" . Financial Times . October 16, 2018. Archived from the original on December 10, 2022.
  33. Michaels, Dave (October 19, 2018). "NYSE, Nasdaq Take It on the Chin in Washington" . The Wall Street Journal . ISSN   0099-9660.
  34. Singh, Kanishka; Kerber, Ross (December 12, 2020). "Nasdaq to remove four Chinese companies' shares from indexes after U.S. order". Reuters . Retrieved December 16, 2020.
  35. "Historical Nasdaq 100 Intraday Futures Data (NDA)". PortaraCQG. Retrieved April 29, 2022.
  36. "Historical E Mini Nasdaq 100 Intraday NQ/ENQ Futures Data". PortaraCQG. Retrieved April 29, 2022.
  37. "Historical Micro E-Mini Nasdaq 100 Intraday Data (MNQ)". PortaraCQG. Retrieved September 15, 2022.
  38. "Order Book, Level 2 Market Data, and Depth of Market". Daytrading. Archived from the original on January 14, 2011.
  39. "Nasdaq Level III Quote". Archived from the original on April 13, 2014.
  40. "Nasdaq Trading Schedule". Archived from the original on April 17, 2014.
  41. "Definition of 'Nasdaq SmallCap Market', now known as Nasdaq Capital Market". Investopedia. Archived from the original on August 4, 2013.
  42. "Definition of 'Nasdaq Global Market Composite'". Investopedia. Archived from the original on September 17, 2013.
  43. "Definition of 'Nasdaq Global Select Market Composite'". Investopedia. Archived from the original on October 4, 2013.
  44. Pinto, Jerald E.; Henry, Elaine; Robinson, Thomas R.; Stowe, John D. (2010). Equity Asset Valuation. CFA Institute Investment Series. Vol. 27 (2 ed.). John Wiley & Sons. p. 6. ISBN   9780470579657. Archived from the original on May 10, 2013. [...] NASDAQ-GS stands for 'Nasdaq Global Select Market,' [...]
  45. "The New York Stock Exchange (NYSE)". Retrieved December 7, 2023.
  46. "10 Largest Stock Exchanges in the World". Retrieved December 7, 2023.
  47. "Getting to Know the Stock Exchanges". Retrieved December 7, 2023.
  48. "The NYSE and Nasdaq: How They Work". Retrieved December 7, 2023.
  49. "The history of Nasdaq from creation in 1971 to the present". Retrieved December 7, 2023.
  50. "The History of NYSE". Retrieved December 7, 2023.
  51. "What Is The NYSE?". Retrieved December 7, 2023.
  52. "NYSE: What Is The New York Stock Exchange?". Retrieved December 7, 2023.
  53. "New York Stock Exchange (NYSE): Definition, How It Works, History". Retrieved December 7, 2023.
  54. "What is NASDAQ?". Retrieved December 7, 2023.
  55. "How to buy American shares (2023)? - Investing on USA stock exchange". Retrieved December 7, 2023.
  56. "Nyse Vs Nasdaq: Whats The Difference". Retrieved December 7, 2023.
  57. "Nasdaq 100 forecast: The US100 rebounds ahead of Fed meeting in December". Retrieved December 7, 2023.