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◈ Finance & Economics·2 min·Updated Mar 11, 2026

What is NASDAQ?

National Association of Securities Dealers Automated Quotations

Quick Answer

NASDAQ is a global electronic marketplace for buying and selling securities, primarily stocks. It is known for its high-tech trading platform and is home to many major technology companies.

Overview

NASDAQ operates as a stock exchange that facilitates the trading of stocks and other securities through an automated system. Unlike traditional exchanges that have a physical trading floor, NASDAQ uses a network of computers to match buyers and sellers. This electronic approach allows for faster transactions and greater efficiency in the trading process. The exchange lists thousands of companies, including many well-known tech giants like Apple and Microsoft. When investors want to buy or sell shares of these companies, they can do so through NASDAQ. The prices of the stocks fluctuate based on supply and demand, which is determined by how many people want to buy or sell at any given time. NASDAQ is significant because it provides a platform for companies to raise capital and for investors to invest in these companies. Its electronic nature means that trading can happen 24 hours a day, which is appealing to global investors. For instance, if someone in Europe wants to invest in a startup listed on NASDAQ, they can do so easily without being limited by time zones.

Frequently Asked Questions

NASDAQ is fully electronic, meaning all trades are conducted through a computer network rather than on a physical trading floor. This allows for quicker transactions and often lower costs compared to traditional exchanges.
NASDAQ is known for hosting many technology and biotech companies, including major players like Google and Facebook. It also lists companies from various sectors, but it is particularly popular among tech startups.
Yes, anyone can invest in stocks listed on NASDAQ as long as they have a brokerage account. This allows individual and institutional investors to buy and sell shares just like any other stock exchange.