Nasdaq Stock Exchange

What Is the Nasdaq Stock Market?

The Nasdaq Stock Market (or Nasdaq Exchange) is the world's second-largest centralized equity marketplace after the New York Stock Exchange (NYSE).
Appeared in February of 1971, the Nasdaq was the primary all-electronic stock exchange. All along, it didn't utilize a physical trading floor, rather selecting a transparent and expedient electronic trading system that diminished both bid-ask spreads and trading costs.
As the Nasdaq filled in prominence, it become the accepted home for technology-based growth companies in the U.S. This is partially due to the exchange's listing costs, which are lower than those of the NYSE and subsequently interesting to new or extending companies that need to allocate however much cash as could be expected to growth.
Today, the exchange is home to a large number of the world's most popular technology companies, including Apple, Meta (Facebook), Alphabet (Google), and Amazon.

Is the Nasdaq a Dealer Exchange or an Auction Exchange?

Not at all like the NYSE, which works as an auction exchange, the Nasdaq works as a dealer exchange. This means that many market makers furnish liquidity in competition with each other.
Market makers do this by posting two prices for some random security at some random time — one at which they will buy the security and one at which they will sell it. By buying and selling at the same time, these market makers collect profit by means of the bid-ask spread for every security they trade. For example, in the event that a market maker bought a share of Stock A for $10 and sold a share of Stock A for $10.03, the bid-ask spread of $0.03 would comprise its profit.
In a dealer market, investors use brokers (the vast majority of which are electronic) to find the least asks for stocks they need to buy and the highest bids for stocks they need to sell. Market makers, overwhelmingly of securities and being willing to buy or sell them at some random time, furnish dealer markets with the truly necessary liquidity that allows individual investors to make trades rapidly at current market prices.

Nasdaq Exchange versus Nasdaq Composite: What's the Difference?

At the point when you hear somebody examining the Nasdaq, they might be discussing one of two things — the Nasdaq exchange, which is the subject of this article, or the Nasdaq Composite, which is a stock index. Not at all like an exchange, which is a genuine marketplace for the trading of equities and other securities, a stock index is essentially a hypothetical portfolio that investors use as a benchmark to measure market performance.
The Nasdaq composite is a stock index that endeavors to follow the performance of all of the stocks that trade on the Nasdaq exchange. These companies are weighted by market capitalization, so those worth more (as estimated by the current value of all outstanding shares) influence the price of the composite more than those worth less.
The Nasdaq Composite is a well known benchmark for the U.S. stock market, yet it just remembers companies that trade for the Nasdaq exchange. Be that as it may, different indexes, similar to the Wilshire 5,000, endeavor to incorporate all publicly traded U.S. companies, remembering those that trade for the NYSE. These "all out market" indexes might be better benchmarks for the American equity market on the loose than the Nasdaq Composite.

What Are the Nasdaq's Top Companies by Market Capitalization?

Actually April 2022, the main five companies (by market cap) traded on the Nasdaq exchange were as per the following:

1. Apple (AAPL)
2. Microsoft (MSFT)
3. Alphabet (GOOG/GOOGL)
4. Amazon (AMZN)
5. Tesla (TSLA)

What Are the Nasdaq's Listing Requirements for Companies?

Nasdaq has four unique arrangements of listing requirements. A company must satisfy something like one of these arrangements of requirements (as well as meeting different criteria) to be eligible for listing on the exchange.
A few general requirements incorporate a base share price of $4 and something like 1.25 million shares of float at the hour of application. Nasdaq's full listing requirements are framed in a 19-page listing guide accessible on its website.

What Are the Nasdaq's Listing Fees for Companies?

As of April 2022, the Nasdaq exchange's "all-inclusive" annual listing fees, which dispense with various different fees that fluctuate in light of a number of factors, are as per the following:

• Up to 10 million shares: $48,000
• 10+ to 50 million shares: $59,500
• 50+ to 75 million shares: $81,000
• 75+ to 100 million shares: $107,500
• 100+ to 125 million shares: $134,500
• 125+ to 150 million shares: $145,500
• More than 150 million shares: $167,000

The all-inclusive annual listing fees above address just one way a company can pay to trade on the Nasdaq. The exchange's full fee structure can be found on its website.

Is Nasdaq a Publicly Traded Company?

Nasdaq Inc, the company that possesses and works the Nasdaq stock exchange, opened up to the world by means of IPO (initial public offering) in 2002. This means that investors can trade shares of the company effectively utilizing quite a few well known online businesses. Nasdaq Inc's ticker symbol is NDAQ, and obviously, it trades on the Nasdaq exchange — not the NYSE.