Welcome to the Investors Trading Academy talking
glossary of financial terms and events. Our word of the day is “NASDAQ”
The NASDAQ is a global electronic marketplace for buying and selling securities, as well
as the benchmark index for U.S. technology stocks. NASDAQ was created by the National
Association of Securities Dealers to enable investors to trade securities on a computerized,
speedy and transparent system, and commenced operations on February 8, 1971.
The NASDAQ computerized trading system was initially devised as an alternative to the
inefficient “specialist” system, which had been the prevalent model for almost a
century. The rapid evolution of technology has made the NASDAQ’s electronic trading
model the standard for markets worldwide. As a leader in trading technology from the
outset, it was only fitting that the world’s technology giants chose to list on the NASDAQ
in their early days. As the technology sector grew in prominence in the 1980s and 1990s,
the NASDAQ became the most widely followed proxy for this sector.