What is the Nasdaq

NASDAQ (acronym for National Association of securities Dealers Automatic Quotation system) is the largest electronic screen based equally securities market in the U.S founded on February 8, 1971 by the National association of securities dealers. It has approximately 5100 companies including small and growing companies as well as many large corporations that have become household names, presently enlisted on this electronic market. It trades more shares per day than any other US market.
NASDAQ was the successor to the over the counter (OTC) and the “curb Exchange” system of trading. At first, it was merely a computer bulletin board system and did not connect buyers and sellers. It only helps lower the spread costs; but over the years, NASDAQ because more of a stock market by acting trade and volume reporting and automated trading system. Today, NASDAQ is the worlds largest stock market that is electronically based. Its main index is the NASDAQ composite, which has seen published since its inception. However, its exchange-trades fund tracks the large-cap NASDAQ 100 index, which was introduced in 1985 alongside the NASDAQ 100 financial index.
NASDAQ operates using today’s information technologies and a system under which “market makers” complete against each other for the best buying an selling prices. NASDAQ market makers use their own capital to buy and sell NASDAQ securities. The combined competitive activity and capital provides active, continuous trading, orderly market and immediacy of execution of trade, NASDAQ allows multiple market participates to trade through its electronic communication networks structure, increasing competition. The small order Execution system is another NASDAQ feature introduced in 1987 to ensure that in turbulent’ market conditions small market enters are not forgotten but are automatically processed.
Its sliding free system offers a lower liquidity removal frees and a more favorable added liquidity rebates based on how much trading volume the market participate executes on the NASDAQ system.
NASDAQ quotes are available at three levels. Level 1 shows the highest did and lowest did offer- the inside quote. Level 1 shows all public quotes of market makers together with information of market makers wishing to sell or buy stock and recently executed orders. Level 111 is used by the market makers and it allows them to enter their quotes and execute orders.