NASDAQ is known as NASDAQ Stock Market. It is an American stock exchange and is the largest electronic screen based equity securities trading market in the United States. NASDAQ Stock Market has more trading volume per hour than any other stock exchange in the world and it has about 3,700 corporations and companies.

The National Association of Securities Dealers (NASD) established NASDAQ in 1971; however in 2000 and 2001 NASD separated themselves of it in a succession of sales. NASDAQ is now owned and operated by NASDAQ OMX Group, the stock of which was listed on its own stock exchange since July 2, 2009 under the ticker symbol NASDAQ: NDAQ. It is monitored by the Securities Exchange Commission (SEC).

NASDAQ stock exchange is controlled and managed by Nasdaq – OMX in New York City which is the second largest exchange in the United States. It also manages a total of eight stock exchanges in Europe and has one third of the Dubai Stock Exchange. In addition it has a double – listing contract with OMX, and will compete with the NYSE Euronext group in attracting new listings.

In 1971 NASDAQ stock exchange commenced trading activities which made the DASDAQ the world’s first electronic stock market. Initially the system was merely that of a computer bulletin board type of system and really did not attract that many buyers and sellers nor did it connect buyers and sellers. The NASDAQ assisted in lowering the spread, which is the difference between the bidding price and the asking price of the stock. However it was ironically not accepted among brokerages as they made much of their money on the spread.

NASDAQ was the successor to the Curb Exchange and the over the counter systems of the trading. The media still referred to the NASDAQ exchange as the OTC up until 1987. Over the years NASDAQ assumed the role of a stock market more and more as they increased trade and volume reporting as well as automated trading systems. Historically NASDAQ was the first stock market in the United States that advertised NASDAQ traded companies and closed with the declaration that NASDAQ will be around for the next hundred years, to the public. The main index is the NASDAQ Composite which has been in print since it was established. On the flip side though, NASDAQ’s exchange traded fund tracks the large – cap NASDAQ – 100 Index, which was launched in 1985 along with the NASDAQ 100 Financial Index.

In order to be listed on the exchange companies must be registered with the SEC and must have at least three market makers as well as meet the minimum requirements for capital, public shares, assets and shareholders, in order to be qualified.