The Nasdaq is the electronic Stock Exchange that remains the most important in the world and an option for modern investors. Its name stands for the National Association of Securities Dealers Automated Quotations System and its most important indices are the Nasadq100, the Nasdaq Composite and the Nasdaq Biotechnology.
The Nasdaq Composite is made up of eight stock indices from sectors such as Banking, IT, Finance, Industrial Companies, Insurance, Telecommunications and Transportation.
Its strength lies in the group of companies that make it up, it is the Stock Exchange that housed the technology giants and despite having experienced its bubble (of dot-com companies), which from one day to the next plummeted the price of the shares, which Those who bet on this market are confident in their profits, because it has more trading volume per hour than any other stock market in the world.
Only in the Nasdaq100 there are one hundred non-financial companies of great weight and with high profitability, which to be included must remain listed for a minimum of two years, with transparent periodic reports and without having suffered bankruptcies and with an average daily volume of 200 thousand shares. nominal.
The Nasdaq Biotechnology is not far behind. This index mainly brings together pharmaceutical companies, and the rule is that more than 100 thousand shares must operate daily, which makes it more demanding when buying shares.
History of regulation
The Nasdaq was born in 1971, and since its appearance, nothing has been the same, every day it was consolidating itself as one of the most prominent markets, and even the speed of its growth generated too much expectation.
Its emergence arose from a study prepared by the Securities and Exchange Commission (SEC) on market security. The result of this analysis was that companies in the technology sector required greater regulation, since their shares, which were highly volatile, were traded Over-The-Counter (OTC), that is, they were unregulated and unsecured operations.
The SEC put an end to this issue by proposing automation in the United States Congress and this is how the Nasdaq Stock Market was born, whose first session was on February 8, 1971, according to its historical data.
Five years later, the Nasdaq just began displaying its first best-in-market offers and sales prices. In the United States newspapers they claimed that this stock market had become the “Dow Jones index, but of technology stocks”, a reason that facilitated transactions and business by offering greater understanding of values.
In the 1980s, the Nasdaq took its first step towards consolidation, as the 10 most important companies with the greatest weight and volume created the Nasdaq National Market, which offered real-time stock quotes.
With this mechanism, it became a direct competitor of the NYSE and began to standardize its schedules with the European and Asian markets, mainly with Germany and Japan, thus generating an advantage over the rest of the markets.
In 1998 it merged with the Amex (American Stock Exchange) to form the Nasdaq-Amex Market Group. Between 1997 and 2000, this Exchange promoted 1,649 companies to become public.
It is currently capable of transacting 6 billion shares in a day. Currently, Nasdaq’s headquarters is housed in a building in Times Square in New York and has curiously become a tourist attraction for visitors who come to the city.
