NASDAQ Origins and Facts

What is the NASDAQ?

The NASDAQ is one of the main stock exchanges in the United States. NASDAQ stands for National Association of Securities Dealers Automated Quotations system and was founded in 1971.

NASDAQ is the largest electronic equity securities market in the United States with around 3,200 listed companies. Based on the daily average of trades completed, the NASDAQ is the most active stock market in the world.

Innovative Approach

Back on February 8 1971 when it was first started by the National Association of Securities Dealers, it was the world’s first electronic stock market even though it was simply a computer bulletin board and did not actually connect buyers and sellers.

The NASDAQ did much in terms of lowering the spread (the difference between the bid and ask prices of a stock) but this was not initially considered a good thing by many brokerages who made much of their money on the spread.

Landmarks