A Remarkable History of Growth of NASDAQ

For those who are into Stock, trading will be familiar with the name NASDAQ (National Association of Securities Dealers Automated Quotations). It is an American Stock Exchange market which is used for buying and selling of securities and commodities. NASDAQ exchange platform is known the world over and is second on the list of best Stock exchanges in the world. NASDAQ is used by people ad agencies world over to measure the health of the US stock market and its growth. One can easily see the effects of the economic status of the country on the NASDAQ stock exchange as well. Stock Trading is a big affair and contributes a large chunk of countries GDP. NASDAQ plays a major role as it does the second highest transaction world over, daily. This exchange uses electronic and technological advancement to deals with millions of transactions every day. It started on February 8, 1971, and was one of the first electronic trade exchange to be set up. It was established by the National Association of Securities Dealers (NASD), which was also known as the Financial Industry Regulatory Authority (FINRA). Electronic trade was later adopted from here, to other exchanges in the world. In 1971, the electronic exchange provided a lot of ease to the customers and trader as keeping a track of all the transactions and securities was very easy rather than manually handling them, which was done in other parts of the globe. This was the reason why NASDAQ quickly become the choice of many for Stock Trading. Since it started using electronic trading from the very beginning, it is now at second position when compared to other stock exchange in the world.

Stock Trading has been a major contributor of wealth in America and most of it passes through NASDAQ in the form of securities, stocks, and transactions. It is owned by NASDAQ inc. and is also one of those markets which brought in the bid process, where one can bid an amount for a share or security. The consumer which wins the bid will purchase the security at the bidding price. Although this did not turn out to be as successful and was soon closed as it decreases the profit margin of the brokers. Apart from electronic trading, NASDAQ also performed over the counter trading, also known as OTC. This is the old fashion way of trading where the physical presence of broker and customer is required and the transaction is done over the counter. By the next ten years of its opening, NASDAQ had almost a share of half the US security market. With the increased popularity, large volumes of trades were being handled and were increasing every day. They were also the first exchange in the US to use a slogan to promote the exchange. The overwhelming response for NASDAQ also made a lot of companies join it. While it was the most famous exchange for securities in the US, a large number of new companies were joining it. After going well for 21 years, NASDAQ joined with London Stock exchange and built an international relationship which would deal in the capital market. This made Stock Trading in NASDAQ international. Now people in the US and London can purchase the securities of their market and securities from other exchanges as well. This international collaboration of both the stock markets brought a lot of internal inflow and increased investments in each other’s country as well.

During the late nineties, NASDAQ had seen major growth in its Stock Trading and was one of the most sought after market for buying and selling securities. They also acquired European Association of Securities Dealers Automatic Quotation System (EASDAQ) in 2001 and named it as NASDAQ Europe. However, during the year 2000, the exchange fell almost more than 70%, leading to a huge loss of investors and companies. To revive it, the company went public in the year 2002 where FINRA sold its shares to NASDAQ Inc. In the year 2002, its first public offering was made. After which NASDAQ merged with the OMX, which is a leading exchange company and later came to be known as NASDAQ OMX Group.

Since then NASDAQ has been a major name in the Stock Trading and security exchange market and has taken over many different companies in the last two decades. NASDAQ has been aggressively spreading through different categories of business. It has been merging or taking over many other Stock Trading markets and security exchanges over the world to create an international workspace for its market. As per a survey in 2016, it had more than 200 million US Dollars revenue through its listing. Apart from being a Stock Trading and Security exchange, the amount and volume of trade it has been doing makes it almost like a stock market. With its expansion and increased volume of trades, the market share of NASDAQ in the security market of the US has been constantly increasing.

Currently, NASDAQ deals with over thirty companies and more than three thousand stocks daily. All the work in this exchange is based on a network of computers and is the exchange process is computerized. It currently has a market cap of 10,857 billion USD, making it one of the biggest names in exchange all over the world. NASDAQ mainly earns its revenue through fees or commission based on the buying and selling of the securities. With its current growth and progress, it will surely take over as the best exchange in the world in a decade or more. The current status of the market shows a lot of growth potential in the future with increased profit for investors. Stock Trading in NASDAQ can be done by people around the globe as it is internationally connected and accessible to all. Therefore, NASDAQ can be called as one of the best exchange and security market for a person to invest in.

 

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