moneekie: nasdaq information for beginners.What is nasdaq, how does it work?
I have to write paper for school on Nasdaq. I know nothing on the subject, please help!!
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Answer by tnspro22
As the world’s leading private-sector provider of financial regulatory services, NASD has helped bring integrity to the markets – and confidence to investors – for more than 60 years.
Our role in the United States is well known – NASD has long served as the primary private-sector regulator of America’s securities industry. We oversee the activities of more than 5,100 brokerage firms, approximately 138,820 branch offices and more than 659,080 registered securities representatives. In addition, we provide outsourced regulatory products and services to a number of stock markets and exchanges.
From oversight to education, we touch virtually every aspect of the securities industry. NASD licenses individuals and admits firms to the industry, writes rules to govern their behavior, examines them for regulatory compliance and disciplines those who fail to comply. We oversee and regulate trading in equities, corporate bonds, securities futures and options. And we provide education and qualification examinations to industry professionals while supporting securities firms in their compliance activities. We also operate the largest securities dispute resolution forum in the world, processing over 8,000 arbitrations and 1,000 mediations a year. With a staff of nearly 2,000 and an annual budget of more than $ 500 million, NASD is a world leader in capital markets regulation.
Answer by THINKMAANOK, Let’s see if I can help you with your school papers.
NASDAQ is the largest U.S. electronic stock market. With approximately 3,300 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. It is home to category-defining companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks. Approximately 54% of NASDAQ-listed shares traded are reported to NASDAQ systems.
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Good luck and I know you can do it.
Answer by OPMNo one told you how it works.
The NASD is the National Association of Securities Dealers. The NASDAQ is the NASD Automated Quotation System.
Once upon a very very long time ago, there was a market called the “over the counter market.” Unlike the stock exchanges, they were stores. You would walk into one of these stores and they would have stock certificates on their shelves rather than say clothes or hammers or groceries. You would put money on the counter and they would pass stock over to you “over the counter.”
You would shop from store to store for the best price.
As time passed an technology took over, a variety of changes occured until finally computer automation won out.
Now, each store is electronic. Each member firm, called a dealer, holds shares in inventory. For example, Microsoft, symbol MSFT, has shares held in the inventory of a variety of dealers. If you want to buy shares of MSFT, the NASDAQ tells you the best price in the country for a specific amount of shares that is available from any dealer. It is called an “ask,” price. It is what the lowest priced dealer is asking to give up its shares.
On the opposite side, you could be a shareholder of MSFT. If you decided you wanted to sell shares in MSFT, the NASDAQ would tell you the best price of all dealers in the US willing to buy those shares for its own inventory.
For high volume stocks, like MSFT or GOOG, the NASDAQ is really indistinguishable from the stock exchanges in practice. The stock exchanges make less use of dealers and connect more buyers and sellers directly. The NASDAQ is only through dealers. A stock like KHDH or COBR have lower volumes and bids may be less current. The difference might be thought of as going shopping the morning after Thanskgiving at Wal-Mart versus going to a dollar store at 8:30 on a Tuesday night. The number of people trying to buy is very different.
At the lowest end of volume are the “pink sheets.” These are so named because there used to be a distribution of prices on pink sheets of paper. These stocks have such low volume that you could put out a sheet of paper today and the price would still be good next week. There is a lot of fraud in the “pinks.” There is almost no market at all for the stocks and there is little required disclosure of protective information to the public. They are often very small local companies with very little in sales.
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