InvestorWords.com Term of the Day The term of the day from InvestorWords.com http://www.investorwords.com Term of the Day for July 04, 2009: National Association of Securities Dealers Automated Quotations system IW logo
National Association of Securities Dealers Automated Quotations system

Nasdaq. A computerized system established by the NASD to facilitate trading by providing broker/dealers with current bid and ask price quotes on over-the-counter stocks and some listed stocks. Unlike the Amex and the NYSE, the Nasdaq (once an acronym for the National Association of securities Dealers Automated Quotation system) does not have a physical trading floor that brings together buyers and sellers. Instead, all trading on the Nasdaq exchange is done over a network of computers and telephones. Also, the Nasdaq does not employ market specialists to buy unfilled orders like the NYSE does. The Nasdaq began when brokers started informally trading via telephone; the network was later formalized and linked by computer in the early 1970s. In 1998 the parent company of the Nasdaq purchased the Amex, although the two continue to operate separately. Orders for stock are sent out electronically on the Nasdaq, where market makers list their buy and sell prices. Once a price is agreed upon, the transaction is executed electronically.
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Copyright(c) 1997-2008 by WebFinance, Inc. ALL RIGHTS RESERVED. Unauthorized duplication, in whole or in part, is strictly prohibited.]]> IW logo
National Association of Securities Dealers Automated Quotations system

Nasdaq. A computerized system established by the NASD to facilitate trading by providing broker/dealers with current bid and ask price quotes on over-the-counter stocks and some listed stocks. Unlike the Amex and the NYSE, the Nasdaq (once an acronym for the National Association of securities Dealers Automated Quotation system) does not have a physical trading floor that brings together buyers and sellers. Instead, all trading on the Nasdaq exchange is done over a network of computers and telephones. Also, the Nasdaq does not employ market specialists to buy unfilled orders like the NYSE does. The Nasdaq began when brokers started informally trading via telephone; the network was later formalized and linked by computer in the early 1970s. In 1998 the parent company of the Nasdaq purchased the Amex, although the two continue to operate separately. Orders for stock are sent out electronically on the Nasdaq, where market makers list their buy and sell prices. Once a price is agreed upon, the transaction is executed electronically.
Browse Our Entire Glossary | Business Dictionary | Stock Research

Copyright(c) 1997-2008 by WebFinance, Inc. ALL RIGHTS RESERVED. Unauthorized duplication, in whole or in part, is strictly prohibited. ]]> http://www.investorwords.com/3197/national_association_of_securities_dealers_automated_quotations_system.html http://www.investorwords.com/3197/national_association_of_securities_dealers_automated_quotations_system.html July 04, 2009