NASDAQ Introduced
The NASDAQ is a stock exchange based in New York City. It originally stood for National Association of Securities Dealers Automated Quotations, and it is the second-largest exchange in the country (second only to the NYSE). Many of the largest companies in the world are listed on the NASDAQ, such as eBay, Apple, Sun, and Microsoft.
NASDAQ got its start in 1971, and today it has over three thousand publicly traded companies. It differs from the NYSE in that trades are all done electronically (for its first twenty years, trading was done with a telephone and a computer bulletin board. Now, trades are done on an automated basis, with reports on trading volume.
The NYSE has the Dow Jones as its main indicator, and the NASDAQ has its "100"- one hundred of the largest market value companies on the exchange. These companies come from all market sectors, with the exception of the financial services sector. Companies are added to and removed from the 100 depending on where they end up in market value.
If a company is publicly listed, it can only be traded on one exchange. With an IPO, or initial public offering, the company decides which exchange to trade on, and in some instances, companies move from one exchange to another.
You will see NASDAQ stocks traded with abbreviations (most are four letters); NYSE stocks have shorter company name abbreviations. In most TV and newspaper stock quotes, the NYSE and NASDAQ stocks are listed side-by-side. The NASDAQ is open from 9:30 am to 4 pm on most weekdays, but pre and post-market trading can occur before and after hours.