Full Form of NASDAQ

What is the Full Form of NASDAQ?

The full form of NASDAQ is the National Association of Securities Dealers Automated Quotation. The NASDAQ is the electronic marketplace at the global level for the buying and selling of the securities through the automated network, which was founded by NASD, i.e., National Association of Securities Dealers (NASD) in the year 1971, and it is also the benchmark index of the U.S. technology stocks.

History

Full Form of Nasdaq

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How Does it Work?

National Association of Securities Dealers Automated Quotation is the electronic marketplace at a global level for the buying and selling of the securities through the automated network. In the NASDAQ case, different market makersMarket MakersMarket makers are the financial institution and investment banks which ensures enough amount of liquidity in the market by maintaining enough trading volume in the market so that trading can be done without any problem.read more compete with each other for buying and selling the stocks they represent as per their choice. Each market maker uses their research techniques, capital, and system resources in order to represent any stock and compete for the orders from the customers by displaying the quotation of buy price and sell price on the electronic exchange. After receiving the orders, market makers either purchase or sell the stock as the case may be out of their own inventories immediately or seek out another side of trades so that the same can be executed as fast as possible.

Requirements

The following are the main sets of listing requirements for the National Association of Securities Dealers Automated Quotation.

In order to get listed in addition to the above requirements, the company must meet with at least one of the following standards by meeting all the criteria of that standard.

NASDAQ Trading Hours

The trading hours of the National Association of Securities Dealers Automated Quotation are divided into three phases that are Pre-market trading hours, normal trading hours, and after-hours trading. The timings of the different phases are as follows:

Trading Hours Nasdaq

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  • Normal Trading Hours: The normal trading hours of the NASDAQ begins at 9:30 a.m. and ends at 4 p.m. Eastern Standard Time (local time).
  • Pre-Market Trading Hours: The Pre-market trading hours of the NASDAQ begin at 4 a.m. and ends at 9:30 a.m. Eastern Standard Time, after which the normal trading hours begin.
  • After-Hours Trading: After the Normal trading hours, the After-hours trading in the NASDAQ extends from 4 p.m. till 8 p.m. Eastern Standard Time.

The National Association of Securities Dealers Automated Quotation trading is open from Monday to Friday. The same remains closed on the weekends (Saturday and Sunday) and on the listed market holidays.

Conclusion

NASDAQ is used for the National Association of Securities Dealers Automated Quotation. As the name implies, It is the stock exchange in America that was founded in the year 1971. It is also the benchmark index of U.S. technology stocks. To get listed at NASDAQ, companies have to follow various listing requirements. One can trade at the NASDAQ during its trading hours only.

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This has been a guide to the Full Form of NASDAQ, i.e. (National Association of Securities Dealers Automated Quotation), and it’s meaning. Here we discuss how does NASDAQ work with its history, requirements, and trading hours. You may refer to the following articles to learn more about finance –

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