Finance Dictionary
Nasdaq
Definition
A global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks.
Deep Dive
Nasdaq refers to both a global electronic marketplace for buying and selling securities and a leading stock market index. As an exchange, Nasdaq was the world's first electronic stock market, established in 1971, and is renowned for listing many prominent growth and technology companies. It revolutionized stock trading by providing an automated, screen-based system, facilitating faster and more efficient transactions than traditional floor-based exchanges.
Examples & Use Cases
- 1A rapidly growing software company choosing to list its shares on the Nasdaq Stock Market for its Initial Public Offering (IPO)
- 2An investor monitoring the daily fluctuations of the Nasdaq Composite Index to gauge the performance of the broader technology sector
- 3Companies like Apple, Amazon, and Microsoft being prominently listed on Nasdaq, influencing its overall market cap and index performance.
Related Terms
Stock ExchangeNYSES&P 500Dow Jones Industrial AverageIPOTechnology StocksMarket Index