NASDAQ
NASDAQ stands for National Association of Securities Dealers Automated Quotation System. NASDAQ operates as a stock exchange in the United States. NASDAQ was the first electronic stock market and was founded in 1971. There are over 3,200 companies listed by NASDAQ, with over 300 foreign companies from 35 different countries. This makes it the world leader in securities listed and number of transactions processed per day. Amongst the companies listed under NASDAQ are industry leaders in many different categories of business. The aim of NASDAQ is to provide a low-cost, fast, fair, and efficient market for investors and companies.
NASDAQ Services and Systems
There are two main features that NASDAQ uses in conducting their business. First is the Electronic Communication Networks (ECN), which allows for trading outside of stock exchanges. This raises competition in the market since the ECN gives clients the ability to access order books and match ordering information while away from the stock exchange. Likewise, the ECN allows clients to do various operation outside of stock exchange trading hours. Another system employed by NASDAQ is the Small Order Execution System (SOES), which was replaced telephone trading in 1987. This system automatically processes small market orders, and allows dealers to enter their trades electronically.
