How does NASDAQ works?

The NASDAQ is a name given to an American stock exchange that is based in New York City. NASDAQ, which is a short form of National Association of Securities Dealers Automated Quotations, in terms of the value of its securities is the second-largest stock exchange in the United States, trailing only the New York Stock Exchange.

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On the NASDAQ many of the world’s largest technology companies appear, including Amazon, Apple, Cisco, eBay, Google, Intel, Microsoft, and Sun.

Stock trading at NASDAQ

The NASDAQ was established in 1971, and now the stock exchange contains about 3,200 publicly traded companies. Due to the reason that its stock trading is and always has been done completely electronically, the NASDAQ is different from the New York Stock Exchange (NYSE).

Stock trading on the NASDAQ occurred over a computer bulletin board system and over telephone for nearly its first two decades. However, now the trading on the NASDAQ occurs using automated trading systems, with full reports on trades and on daily trading volumes.

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NASDAQ 100 Index

The NASDAQ offers the NASDAQ 100 as its primary index. This comprises of 100 of the largest companies in market value that do their trading on the NASDAQ. Depending on their ranking in market value each year, companies can be added and removed from the NASDAQ 100.

When on a stock ticker you are viewing the performance of stocks, you’ll see that stocks are traded on the NASDAQ using a four-letter abbreviation, with only a few exceptions.

Standard buying and selling session of NASDAQ’s

The standard buying and selling session of NASDAQ’s is from 9:30 a.m. to 4 p.m. Eastern time on most weekdays, excluding a few holidays. By pre-market and post-market trading sessions the traders are allowed to buy and sell outside of standard market hours.

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