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History of NASDAQ



Nasdaq at Times Squre NYC

What started as an electronically trading forum created by the National Association of Securities Dealers in 1971 has become the second largest way to capitalize upon the stock markets throughout the world. The history of NASDAQ is a stock exchange market based in the United States. The objective of the system was to allow people to buy and sell stocks in a computerized system that eliminated the need to conduct in person transactions. It altered the way investors were able to make money by lowering the difference between what a person bids and what the seller is asking for in the value of a stock.

As the history of NASDAQ matured, it became a stock market in its own right. Rather than just a means to facilitate the exchange of communications, the system allows trading and reports upon the volumes of stocks that are traded. Thanks to the foresight of using the Internet to conduct market transactions, NASDAQ became the first market that allowed online trading. Before using computers in these orders to buy and sell stocks, the phone was the preferred method of communication. Because some traders stopped answering the phone during times of financial uncertainty, the incorporation of the Small Order Execution System was established. This prevented the ability of humans to prevent a desired transaction from occurring.

1992 saw the history of NASDAQ expand to foreign markets. This year marked the efforts of the market to join forces with the London Stock Exchange. This growth, combined with the purchase of the Philadelphia Stock Exchange has allowed NASDAQ to become more valuable for investors. Companies that desire to have their stock available on this market need to have established three different firms that act as brokers for their stock options. These companies must also have specific requirements met in regards to the corporation operations and number of shares available to the public.

In the beginning of the year 2011, NASDAQ has 2,872 different listings within the market. This means that the history of NASDAQ surpasses any other electronic stock exchange within the world. To help facilitate professionals that work with these listings, the exchange is available from 7 a.m. until 8 p.m. Eastern time. This allows people to handle affairs before and after normal trading times. In addition, the stock prices that are conveyed by NASDAQ are broken down into three different levels. The more common value is known as level 1. Level 2 and 3 are used by professionals that help them conduct their business.

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