Explain NASDAQ for beginners

To explain NASDAQ for beginners you would need to know the fundamental difference between the NASDAQ and the NYSE. 

The NASDAQ in full form means the National association of securities dealers and automated quotations. By that definition it started out as an association whereby quotes were sent in an automated manner to the members and then using this information these securities dealers could then trade as they wanted to and also they were not dependent on the jobbers as well as the market makers.

 Now in its current NASDAQ is completely an online system of trading and there is no trading which is done which is done on the floor unlike NYSE.

 If you really want to learn about the definition of NASDAQ then you need to read my post about NASDAQ and the way it works.  

NASDAQ later acquired the American Stock exchange and is now the largest firm in the world in terms of average trades per day.  

Another factor why NASDAQ is popular is because NASDAQ has all the more technology stocks than other stock exchange. In the current US economy technology companies drive the nations economy as opposed to manufacturing companies which have been shipped to China and India.  

As is with every other exchange NASDAQ also has its own set of indices and the most famous of them all is NASD 100 as well as the NASDAQ composite.

 That said there are several other indices which have been put together by the NASDAQ for various sectors of the economy.

 Tip For beginners : Invest in a good investment software before you even start thinking baout making money in the stock market.  

As a stock market for beginners advice you should not get bogged by these sheer numbers of indices and instead should just focus on the broader index and it is only when you have achieved a good number of years in the trading arena and are ready to move to sector specific stocks and their tracking that you would need the sector specific indices.

 Other competing indexes which are there are the S&P 500, Dow Jones as well as the indexes from the rating companies like Moody’s.  

NASDAQ on its part alos has several listing rules and regulations for the companies but those are less stringent than the NYSE.

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