NASDAQ Explained
Friday, April 23rd, 2010
NASDAQ is an acronym initially stood for National Association of Securities Dealers Automated Quotations. Over time this was done away with and today it has become a noun of its own. It is the largest stock market in the world and is run electronically. It was initially started (1971) to deal in Over the Counter stocks. These were stocks that were not traded regularly among them were the New York stock exchange. Stock listed on the NASDAQ are much smaller as compared to those of the NYSE which deals in stocks of big companies while NASDAQ deals with stocks by smaller or new companies in the market.
Come the year 1992, the NASDAQ decided to come together with Amex (American Stock Exchange). This move was made in an effort to increase their competition with rivals NYSE. Unlike the NYSE which deals in stocks that are traded physically the NASDAQ stocks are electronically operated and are mainly deals. People do not buy and sell from one another directly; instead market makers are used to make the deals.
Investing in the market is a very lucrative business. As long as someone puts his money in there, it is up to another person to work hard and ensure that it increases in value. At the end of trading period they go sell their shares and make some money. The problem is that it is never predictable but thanks to the stock gurus, there are some indicators that may give someone a lead on how to read the stock market. 