NASDAQ

Nasdaq is a global electronic market place for buying and selling stocks. Nasdaq began as a division of the National Association of Securities Dealers (NASD), now known as the Financial Industry Regulatory Authority. Its name was originally an abbreviation for "National Association of Securities Dealers Automated Quotations" (FINRA). The Securities and Exchange Commission (SEC) pushed NASD to automate the market for securities not listed on an exchange, which led to the creation of Nasdaq. As a result, the first electronic trading system was created. NASDAQ is a computerized system that offers price quotations to brokers and dealers for numerous securities listed on the New York Stock Exchange as well as for securities traded over-the-counter.

Understanding Nasdaq

Nasdaq stands as a preeminent global electronic marketplace facilitating the buying and selling of securities. Initially, its acronym represented the National Association of Securities Dealers Automated Quotations. Nasdaq originated as a subsidiary of the National Association of Securities Dealers (NASD), now recognized as the Financial Industry Regulatory Authority (FINRA). Its inception followed the Securities and Exchange Commission's (SEC) recommendation to NASD to mechanize the market for securities not listed on an exchange. This led to the creation of the first electronic trading system, and Nasdaq commenced operations in 1971.

Grasping the Essence of Nasdaq

Nasdaq, headquartered in New York City, commenced operations on Feb. 8, 1971, marking a significant milestone as the world's premier automated stock exchange. Subsequently, in 2006, Nasdaq transitioned into a national securities exchange after formally separating from the NASD. Further solidifying its presence, Nasdaq merged with the Scandinavian exchanges group OMX in 2008, culminating in the establishment of the Nasdaq OMX Group. The entity rebranded as Nasdaq Inc. in 2015.

Ecosystem and Operation

Nasdaq's influence extends across more than 5,000 companies navigating its platforms daily. Notably, many technology giants, including Apple (AAPL) and Microsoft (MSFT), find a home within its realms.

Tiers of Nasdaq

Since 2006, Nasdaq operates under three distinct tiers: the Nasdaq Global Select Market, the Nasdaq Global Market, and the Nasdaq Capital Market.

Portfolio and Reach

Nasdaq's operational footprint spans 29 markets across the United States, Canada, Scandinavia, and the Baltics. Facilitating the trading of stocks, derivatives, fixed income, and commodities, Nasdaq also oversees a clearinghouse and five central securities depositories across the United States and Europe.

Unpacking Nasdaq Composite

The Nasdaq Composite, housing over 2,500 stocks, serves as a barometer for the market's pulse, featuring major technology companies like Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN).

Financial Performance

In the fiscal year ending Dec. 31, 2022, Nasdaq reported robust financials, with total net income amounting to $1.12 billion on total revenue of $6.23 billion. Nasdaq also enhanced its quarterly dividend per common share to $0.78 in 2022.

Role as a U.S. Stock Market

Established in February 1971, Nasdaq serves as a cornerstone of the U.S. stock exchange landscape, facilitating the trading of over 5,000 companies, both domestic and international.

Exploring Nasdaq's Nasdaq 100

The Nasdaq 100 index, comprising 100 of the largest U.S. and international non-financial companies listed on the Nasdaq stock exchange, presents investors with an avenue to capitalize on market returns.

Apple's Nasdaq Listing

Apple, a prominent Nasdaq constituent, trades under the ticker symbol AAPL, symbolizing its Nasdaq listing since its IPO in December 1980. As of June 30, 2023, Apple stock closed at $190.25, reflecting Nasdaq's enduring appeal.

In Conclusion

Nasdaq, a beacon of financial innovation, remains at the forefront of the global financial landscape, embodying the convergence of technology and commerce. With a rich history spanning over five decades, Nasdaq continues to navigate the dynamic financial terrain with resilience and adaptability.