All You Need To Know About NASDAQ

Published on 01/08/2020
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If you’re a financial enthusiast or looking to make a career move towards the financial sector in 2020, then it helps to get familiar with some of the fundamentals of the industry. NASDAQ is at the heart of this sector, acting as a hub and index for the stock market in the US. Let’s dive a little deeper into what it is, where it came from, and how it can help you get started on a new career path in finance.

All You Need To Know About NASDAQ

All You Need To Know About NASDAQ

What is the NASDAQ?

NASDAQ stands for the National Association of Securities Dealers Automated Quotations System, which may not explain a whole lot, which is why we are here. It refers to a worldwide marketplace, hosted solely online, which is used for buying and selling securities on the stock market. It was initially designed to help improve the efficiency of forex trading, as well as creating a more transparent digitized system that would be easier to regulate, today it is the second-largest stock exchange in the world based on market capitalization. NASDAQ is also used to refer to what is known as the NASDAQ Composite, an index of thousands of stocks that are actively listed in the stock market, in particular, those that are at the forefront of technological advancement and innovation. This includes global corporations like Google, Amazon, Spotify and more.

The Origins of NASDAQ

NASDAQ was originally set up by the NASD, and as it grew, it became evident that there was a need for it to be separated from its creator, in order to become the global electronic marketplace for buying and selling securities that it is today, as well as the benchmark index for U.S. technology stocks. This happened in 2006, where it combined with Scandinavian finance exchange group OMX, instantly becoming a powerhouse for stock markets, now servicing a global market. With its headquarters in New York and closely linked to multiple banks, it now operates over 25 markets, including equities, options, commodities and more. Interestingly, what was initially meant to be a specialist system, has subsequently grown into a global model, largely thanks to rapid technological innovation.

The Origins Of NASDAQ

The Origins Of NASDAQ

NASDAQ & Cryptocurrency

With the rise of cryptocurrency and increased stock options related to it, it was inevitable for NASDAQ to adapt at some point. In 2019, it introduced cryptocurrency features in collaboration with prominent investment firms and collaborators. Cryptocurrency has seen a rapid rise since 2010, albeit that its bubble burst in 2017, which has made it a largely volatile, deregulated currency. To this day, cryptocurrency performance remains erratic, with many conservative financial analysts and banks remaining skeptical about its worldwide adoption.

Learning More To Improve Your Financial Knowledge

If you’d like to learn more about NASDAQ and how the stock exchange works, then it helps to set yourself some basic goals to start with. There are many resources online which provide the latest news regarding the stock exchange and forex, and if you’re unsure of how to start, why not begin by setting up a Google Alert, which will deliver the news to you every day. You can also research some online courses on financial trading, or make an appointment with a financial advisor, who will be able to point you in the right direction.

As evidenced by the story of NASDAQ, technology has a massive role to play in how we live and work in the 2020’s. Whether you’re looking to be more financially savvy, or you are serious about becoming one of the millions of traders out there in the world, using the resources you have is a great place to start. Good luck as you embark on this exciting new journey!

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