Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Nasdaq

What it is:

Nasdaq, which stands for the National Association of Securities Dealers Automated Quotation system, is a computerized system for stock trading.

How it works (Example):

The Nasdaq does not have a physical trading floor; it is entirely computerized. The exchange originally operated via telephone, but in 1970 it became computerized. The exchange lists about 5,000 stocks.

You often can tell whether a stock is listed on the Nasdaq (versus the New York Stock Exchange) by looking at its ticker symbol. Nasdaq stocks typically have four- or five-letter symbols (such as Microsoft: MSFT); NYSE stocks typically have three-letter ticker symbols (such as McDonalds's: MCD).

Why it Matters:

The New York Stock Exchange may be the world's most famous stock exchange, but the Nasdaq is equally important.