What It Is & How To Invest: The NASDAQ Exchange
What is the NASDAQ Exchange?
The NASDAQ Stock Market is the second-largest stock exchange in the world by market capitalization, behind only the New York Stock Exchange or NYSE. The NASDAQ platform is owned by The NASDAQ OMX Group, which also owns the OMX stock market network and several other US stock and options exchanges.
Formed in 1971 by the National Associate of Securities Dealers NASD to fill the need for reporting stocks that were not an ideal fit in the regular stock exchange. NASDAQ officially separated from the NASD and began to operate as a national securities exchange in 2006.
NASDAQ provides a means for traders, brokers, institutional and online purchasers to execute stock orders. This system reports on over the counter stocks for thousands of stocks not listed on the other exchanges. In the 1990s, NASDAQ officially surpassed the AMEX Exchange, regarding the number of listings.
In 1999 NASDAQ merged with AMEX to form the NASDAQ-AMEX Group. Then by 2000, the National Association of Securities Dealers sold their interest in NASDAQ to private investors. To trade on the NASDAQ Exchange, the trader and members must be certified and agree to the bylaws of NASDAQ Inc.
As with most companies, NASDAQ holds its Articles of Incorporation, Corporate Officers, Bylaws and holds board meetings. NASDAQ LLC has a governing board which has rule and regulations it operates under. Give the quasi-governmental status of NASDAQ the Securities and Exchange Commission (SEC) has a role in making sure NASDAQ adheres to regulations.
If a company engages in insider trading, or fraudulent reporting practices of corporate earnings and assets, or the many other areas of poor practices governed by the Securities Act of 1934, the SEC can provide sanctions and remedies for these acts. Also, state Attorney Generals and the U.S. Attorney may bring actions in court to cease-and-desist the bad acts and provide criminal sanctions.
What stocks are traded on NASDAQ?
In the NASDAQ Company List, you’ll find companies listed on NASDAQ, NYSE, and AMEX, as an investor you may invest in NASDAQ. The corporation that runs the exchange itself, you will find it listed under the ticker NDAQ. There is much speculation, but in general, the value of the stock goes up and down depending on the overall health of the what’s known as the NASDAQ 100.
The NASDAQ-100 Index includes 100 of the largest domestic and international non-financial companies listed on The NASDAQ Stock Market based on market capitalization, it’s stock market symbol is NDX.
Currently, NASDAQ is priced at around $6,867.36 a share. It has a market capitalization of $12.83 billion dollars and over the past five years has a 218.49 percent return on investments (Nov 2012-2017). The NASDAQ top 10 holdings are: Apple, Amazon, Facebook, Microsoft, Tesla, Micron, Qualcomm, Netflix, Baidu, and Intel; outperforming companies such as Google and Oracle.
Today’s NASDAQ 10 Most Active Companies by Dollar Volume
Last Sale Change Net / % Dollar Volume
- AAPL Apple, Inc.
$ 174.9399 ▲ 1.04% $ 4,110,468,538
- AMZN Amazon.com, Inc.
$ 1,156.16 16.67 ▲ 1.46% $ 4,001,210,780
- FB Facebook, Inc.
$ 180.85 1.01 ▼ 0.56% $ 1,775,256,153
- MSFT Microsoft Corporation
$ 83.10 0.62 ▼ 0.74% $ 1,573,459,526
- TSLA Tesla, Inc.
$ 312.61 5.20 ▼ 1.64% $ 1,519,153,929
- MU Micron Technology, Inc.
$ 49.13 0.27 ▼ 0.55% $ 1,387,398,774
- QCOM QUALCOMM Incorporated
$ 68.10 1.43 ▲ 2.14% $ 1,001,886,655
- NFLX Netflix, Inc.
$ 196.30 0.07 ▲ 0.04% $ 917,758,642
- BIDU Baidu, Inc.
$ 249.67 5.37 ▲ 2.20% $ 835,207,818
- NTC Intel Corporation
$ 44.64 0.30 ▼ 0.67% $ 702,975,230
How to invest in NASDAQ?
NASDAQ offers thousands of opportunities to invest in individuals stocks, indexes, real estate investment trusts, options and other means to invest. Choose from among semiconductors, energy, finance, components, retail, in all 3113 components make-up this Exchange. Each company listed must meet capitalization and reporting requirements.
Investors have the opportunity to review each quarter reported earnings and debts. A company is required to report any significant issues that may affect the investor and the company. There are hundreds of news services and financial tracking services which actively stay on top of company news.