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Nasdaq

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.

This article is about the stock exchange. For the stock market index, see Nasdaq Composite. For the corporation that owns Nasdaq exchanges, see Nasdaq, Inc. For the corporation's physical headquarters, see Nasdaq MarketSite.

Type

Stock exchange

New York City, U.S.

40°45′23″N 73°59′09″W / 40.7565°N 73.98576°W / 40.7565; -73.98576

February 8, 1971 (1971-02-08)

Nasdaq, Inc.

United States dollar

Decrease 4,061 (Feb 2024)[1]

Increase US$23.414 trillion (Feb 2024)[2]

www.nasdaq.com

Level 1 shows the highest bid and lowest ask—inside quote.

Level 2 shows all public quotes of together with information of market dealers wishing to buy or sell stock and recently executed orders.[38]

market makers

Level 3 is used by the and allows them to enter their quotes and execute orders.[39]

market makers

Nasdaq quotes are available at three levels:

Trading schedule[edit]

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.

Capital Market (NASDAQ-CM ) is an equity market for companies that have relatively small levels of market capitalization. Listing requirements for such "small cap" companies are less stringent than for other Nasdaq markets that list larger companies with significantly higher market capitalization.[41]

small cap

Global Market (NASDAQ-GM ) is made up of stocks that represent the Nasdaq Global Market. The Global Market consists of 1,450 stocks that meet Nasdaq's strict financial and liquidity requirements, and corporate governance standards. The Global Market is less exclusive than the Global Select Market.[42]

mid cap

Global Select Market (NASDAQ-GS ) is a market capitalization-weighted index made up of US-based and international stocks that represent the NASDAQ Global Select Market Composite (NQGS). The Global Select Market consists of 1,200 stocks that meet Nasdaq's strict financial and liquidity requirements and corporate governance standards. The Global Select Market is more exclusive than the Global Market. Every October, the Nasdaq Listing Qualifications Department reviews the Global Market Composite to determine if any of its stocks have become eligible for listing on the Global Select Market.[43][44]

large cap

The Nasdaq Stock Market has three different market tiers:

Exchange systems. Before the pandemic, the NYSE maintained both an electronic trading system and a trading floor system staffed by live professionals who help conduct auctions.[51] Nasdaq has been an all-electronic exchange since its inception.

[50]

Market Types. The NYSE uses an auction market to set prices, while Nasdaq uses a dealer market.[53] In the NYSE auction market, buyers and sellers submit competitive bids simultaneously. When the buyer's bid and the seller's request match, a transaction occurs. In the Nasdaq dealer market model, all prices are set by dealers. Dealers continually update bid (sell) and ask (buy) prices throughout the trading day.

[52]

Listing fees. There is a big difference in listing fees on the major stock exchanges. Listing fees on the Nasdaq range from $55,000 to $80,000 for the lowest tier of the capital market.[55] The NYSE is significantly more expensive, with the lowest listing fee of $150,000.

[54]

Sectors. Investors typically view the NYSE as an exchange for older, more established companies. Nasdaq tends to be home to newer companies focused on technology and innovation, so some investors consider Nasdaq listings to be riskier.[57]

[56]

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:

Official website