Nasdaq

BrandAI briefing

AI supplement

Original synthesis to sit alongside the encyclopedia article below. Not part of Wikipedia; verify facts on Wikipedia when precision matters.

Nasdaq is a leading global financial services corporation that operates one of the world’s largest fully electronic stock exchanges, most widely recognized for its heavy concentration of listed technology and high-growth innovative companies. Originally founded as the first automated securities quotation system, it has expanded beyond its U.S. domestic roots to offer exchange operations, benchmark indices, market data, and regulatory technology solutions for clients across multiple regions.

Key moments

1971Launched by the U.S. National Association of Securities Dealers as the first automated over-the-counter stock quotation system, eliminating the need for paper-based manual price tracking.
2000Spun off as an independent publicly traded company, ending its formal regulatory affiliation with the NASD to operate as a for-profit exchange operator.
2008Completed acquisition of Nordic exchange group OMX to expand its operational footprint across European markets.
2020sEmerged as one of the world’s most active listing venues for high-profile technology initial public offerings (IPOs) and special purpose acquisition companies (SPACs).

Nasdaq maintains a differentiated market position across its multiple lines of business, facing distinct sets of competitors in each segment of its operations.

Listing services: Nasdaq holds a dominant market share of U.S. tech sector listings, positioning it as the default preferred venue for high-growth tech IPOs relative to the New York Stock Exchange, which historically caters to more legacy industrial and established blue-chip firms.
Index products: The Nasdaq 100 benchmark, tracking the 100 largest non-financial companies listed on the exchange, is one of the most heavily traded equity indices globally, competing for retail and institutional investor assets with longstanding rival benchmarks including the S&P 500 and Dow Jones Industrial Average.
Technology licensing: Unlike many peer exchange operators that only serve their own local markets, Nasdaq licenses its mature, high-speed trade matching, market surveillance, and post-trade processing technology to smaller regional exchanges around the world, creating a stable recurring revenue stream that sets it apart from direct competitors.

History

mcap	$42.2 trillion (December 2025)‡R2R‡

homepage	nasdaq.com

indexes	Nasdaq-100 Nasdaq Financial-100 Nasdaq Composite

1972–2000

Founding and origins

Nasdaq, Inc. was founded in 1971 by the National Association of Securities Dealers (NASD), now known as the Financial Industry Regulatory Authority (FINRA). Nasdaq did not have a physical trading floor, unlike other traditional stock exchanges, including the New York Stock Exchange.[7] "Nasdaq" (originally and still commonly spelled with all-capital letters as "NASDAQ") is an acronym for The "National Association of Securities Dealers Automated Quotations".[8] On February 8, 1971, the Nasdaq Stock Market commenced operations as the world's first fully electronic stock market.[7] Initially, Nasdaq served as a "quotation system" rather than a platform for electronic trading.[9]

Quote availability

A quote is the price of a stock as listed on an exchange. Quotes consist of bids, the price buyers are willing to pay, and offers, the price sellers will accept.[45] Nasdaq quotes are available at three levels:

Level 1 shows the highest bid and lowest ask—inside quote.

Level 2 shows all public quotes of market makers together with information of market dealers wishing to buy or sell stock and recently executed orders.[46]

Level 3 is used by the market makers and allows them to enter their quotes and execute orders.[47]

Market tiers

Within the Nasdaq Composite Index, the Nasdaq exchange has three different market tiers for listed companies:[51]

Capital Market (NASDAQ-CM small cap) is an equity market for companies that have relatively small levels of market capitalization.[51] Listing requirements for such "small cap" companies are less stringent than for other Nasdaq markets that list larger companies with significantly higher market capitalization.[52]

Global Market (NASDAQ-GM mid cap) is made up of stocks that represent the Nasdaq Global Market. The Global Market consists of 1,450 stocks that meet Nasdaq's strict financial and liquidity requirements, and corporate governance standards. The Global Market is less exclusive than the Global Select Market.[53][54]

Difference between NYSE and Nasdaq

Nasdaq is the second largest stock exchange in the United States. In addition to age and market capitalization, there are other key differences between the two exchanges:[58][59][60]

Trading Volume. Nasdaq has a greater trading volume than the NYSE with approximately 1.8 billion trades per day.[61]

Exchange systems. Before the COVID-19 pandemic, the NYSE maintained both an electronic trading system and a trading floor system staffed by live professionals who help conduct auctions.[62][63]

2000–2020

Public listing and market change

In a series of sales in 2000 and 2001, FINRA sold its stake in the Nasdaq. On July 2, 2002, Nasdaq, Inc. became a public company via an initial public offering, listing its own shares on the exchange (traded under the ticker symbol NDAQ).[17] In 2006, the status of the Nasdaq Stock Market was changed from a stock market to a licensed national securities exchange.[18] In 2007, it merged with OMX, a leading exchange operator in the Nordic countries, expanded its global footprint, and changed its name to the Nasdaq OMX Group.[19]

To qualify for listing on the exchange, a company must be registered with the United States Securities and Exchange Commission (SEC), must have at least three market makers (financial firms that act as brokers or dealers for specific securities) and must meet minimum requirements for assets, capital, public shares, and shareholders.

In 2011, after an announced merger of NYSE Euronext with Deutsche Börse, Nasdaq partnered with Intercontinental Exchange to launch a rival bid, but the bid was withdrawn on regulatory concerns.[20]

Acquisitions

In December 2005, Nasdaq acquired Instinet for $1.9 billion, retaining the Inet ECN and subsequently selling the agency brokerage business to Silver Lake Partners and Instinet management.[21][22][23]

The European Association of Securities Dealers Automatic Quotation System (EASDAQ) was founded as a European equivalent to the Nasdaq Stock Market. It was purchased by Nasdaq in 2001 and became Nasdaq Europe.[24] In 2003, operations were shut down as a result of the burst of the dot-com bubble.[25] In 2007, Nasdaq Europe was revived first as Equiduct and was acquired by Börse Berlin later that year.[26]

Sustainability and leadership milestones

On June 18, 2012, Nasdaq OMX became a founding member of the United Nations Sustainable Stock Exchanges Initiative on the eve of the United Nations Conference on Sustainable Development (Rio+20).[28][29]

In November 2016, chief operating officer Adena Friedman was promoted to chief executive officer, becoming the first woman to serve as chief executive officer of a major U.S. exchange.[30]

In 2016, listings-related activities accounted for $272 million in Nasdaq's revenue.[31]

In October 2018, the SEC blocked the New York Stock Exchange (NYSE) and Nasdaq from raising certain market-data prices. This was the first time the commission rejected increases for the exchanges' stock market data feeds.[32]

currency
type	Stock exchange
city	New York City
country	U.S.
coordinates	40.7565°N, -73.98576°W
foundation	February 8, 1971
owner	Nasdaq, Inc.
listings	4,025 (January 2026)‡R1R‡

Nasdaq

BrandAI briefing

History

1972–2000

Founding and origins

Quote availability

Trading schedule

Market tiers

Difference between NYSE and Nasdaq

See also

External links

References

Market growth

Online trading

Founding and origins

Market growth

Online trading

2000–2020

Public listing and market change

Acquisitions

Sustainability and leadership milestones

Public listing and market change

Acquisitions

Sustainability and leadership milestones

2021-present