What is the Nasdaq?

The National Association of Securities Dealers Automated Quotations (NASDAQ) began trading on February 8, 1971, and it became the largest stock market in the U.S. by volume in 1999. It is unique because it is not limited to one location. Trading is executed through Nasdaq’s sophisticated computer and telecommunication network that transmits real-time quote and trade data to more than 1.3 million users in 83 countries. As the world’s first electronic stock market, it is made up of the Nasdaq National Market and the Nasdaq SmallCap Market.

Nasdaq allows multiple market participants to trade through its electronic communication networks structure, thus increasing competition. The Small Order Execution System (SOES) was introduced in 1984 as another Nasdaq feature to ensure that during turbulent market conditions small market orders are not forgotten but automatically processed.