The Nasdaq Stock Market was founded on February 8, 1971, and has become one of the largest stock exchanges in the world. It’s based in New York City and owned by the National Association of Securities Dealers Automated Quotations (NASDAQ). It’s operated by the NASDAQ OMX Group, which also owns the third-largest stock exchange in the world, Borsa Italiana, or Milan Stock Exchange. The Nasdaq Stock Market: An American stock exchange based in New York City
A brief history
The Nasdaq Stock Market began as the National Association of Securities Dealers Automated Quotations. It was created by the National Association of Securities Dealers (NASD) to enable investors to trade securities on a computerized, automated system. The first trade on the Nasdaq took place on February 8, 1971. The Nasdaq is now owned and operated by the Nasdaq, Inc., which also owns and operates the NASDAQ Nordic and NASDAQ Baltic stock exchanges. It currently lists 2,200 companies with an average market capitalization of about $5 billion each. The Nasdaq Stock Market: An American stock exchange based in New York City
A closer look at the stocks listed
The Nasdaq Stock Market is home to some of the biggest companies in the world, including Apple, Amazon, and Microsoft. But it’s not just tech giants that are listed on the Nasdaq. You’ll also find plenty of biotech, healthcare, and financial companies. In total, there are over 3,000 stocks listed on the Nasdaq. Some recent big IPO (initial public offering) listings include Spotify, Blue Apron, and Snap Inc. Investors typically buy shares at a company’s IPO then sell them when they want to cash out their investment.
The company can do another round of financing by issuing more shares or issuing new bonds called debt securities. There is an advantage for investors who purchase these securities because they have a higher return rate than with an initial investment in the company at its IPO.
Despite what you may think, this market isn’t as cutthroat as many people believe it to be–the average daily trading volume for all stocks on the Nasdaq was only $12 billion last year.
Tips for trading stocks
1. Do your research. Before buying or selling any stock, you should have a clear idea of what the company does, its financial history, and the current market conditions.
2. Consider your timeframe. Are you looking to invest for the long term, or do you need to make a quick profit?
3. Decide how much risk you’re comfortable with. Some stocks are more volatile than others, so it’s important to know your tolerance for risk.
4. Use stop-loss orders. A stop-loss order is an order to sell a security when it reaches a certain price, and can help limit your losses if the stock price falls unexpectedly.
5. Have a plan for exiting your position. What will you do if the price goes up, down, or stays steady?
6. Know where to go for information. Not sure which site offers credible information about specific companies? The Securities and Exchange Commission (SEC) has compiled helpful tools on their website that can help guide your decision making process.
Q.&A.
What is the Nasdaq Stock Market?
The Nasdaq Stock Market is an American stock exchange based in New York City. It is ranked second on the list of stock exchanges by market capitalization of shares traded, behind the New York Stock Exchange.
What are the benefits of investing in the Nasdaq Stock Market? Investors can buy and sell stocks on this platform without the need for a broker and their commissions. The trading happens electronically so there is no waiting around for someone to be available to take your order over the phone or through a live-chat feature. If you have some money to invest but you don’t know where to start, this may be a good place for you!