What is NASDAQ

NASDAQ is a U.S.-based electronic stock exchange where securities are traded through computer-based systems instead of a traditional physical trading floor.

• NASDAQ began operations on February 8, 1971.
• It connects buyers and sellers electronically and uses market makers to provide liquidity.
• It is known for listing major technology companies such as Apple, Microsoft, Amazon, Alphabet, Meta, and Tesla.
• Companies must meet applicable financial, market value, shareholder, and governance requirements to list on NASDAQ.
• Indian investors can access NASDAQ-listed investments through permitted international investment routes.
• Under the Liberalised Remittance Scheme, eligible resident individuals can remit up to ₹2.38 crore (USD 250,000) per financial year, subject to applicable rules.

NASDAQ stands for National Association of Securities Dealers Automated Quotations. It is a U.S.-based stock exchange that operates electronically instead of through a traditional physical trading floor.

Its computer-based systems connect market participants and help process buy and sell orders.

NASDAQ is particularly associated with technology companies. Apple, Microsoft, and Amazon are examples of companies listed on the exchange.

NASDAQ began operations on February 8, 1971, and was created by the National Association of Securities Dealers, or NASD.

It initially operated as an electronic quotation system. This allowed market participants to view updated bid and ask prices electronically.

Over time, NASDAQ developed further as electronic trading became more common. During the 1990s, it became especially well known for its association with technology companies during the dot-com boom.

NASDAQ works as an electronic marketplace that connects buyers and sellers through computer-based trading systems.

Market makers also play an important role. They provide liquidity by quoting prices at which they are willing to buy or sell securities.

For example, a market maker may show one price at which it is willing to buy a share and another price at which it is willing to sell it. These are commonly called the bid and ask prices.

NASDAQ's electronic systems process orders and provide market participants with current market information. It also supports real-time market data, algorithmic trading, and high-frequency trading.

NASDAQ is often associated with the technology sector because many well-known technology companies are listed on it.

Examples include:

• Apple
• Microsoft
• Amazon
• Alphabet
• Meta
• Tesla

This strong presence of technology companies is why NASDAQ is sometimes called the "tech exchange".

NASDAQ itself has also used advanced technology in its market operations. Electronic systems have been central to how it functions since it began operations.

NASDAQ uses an electronic trading system supported by market makers. These market makers quote prices at which they are prepared to buy and sell securities.

When several market makers provide prices for the same security, they compete for orders. This gives market participants access to different available buying and selling prices.

NASDAQ's automated systems process orders electronically and provide real-time market data.

For example, if several market makers quote prices for the same share, investors can view the available bid and ask prices through the electronic system.

Yes. NASDAQ is based in the United States, and Nasdaq, Inc. is headquartered in New York City.

Although it is based in the U.S., NASDAQ has a global presence through its exchange operations, market technology, data, and other financial-market services.

Its indices are also followed around the world. The NASDAQ-100, for example, tracks large non-financial companies listed on the Nasdaq Stock Market.

Companies must meet NASDAQ's applicable listing requirements before their securities can be listed for trading.

The requirements may include:

A company starts by submitting a listing application to NASDAQ. The application is then reviewed against the applicable listing standards.

Companies must also pay the required listing fees. Once the application is approved and the required conditions are met, the securities can be listed for trading.

Indian investors can get exposure to NASDAQ-listed companies through permitted international investment routes.

One option is to open an international trading account with a brokerage that provides access to U.S. markets. Another option is to invest through exchange-traded funds, or ETFs, that track NASDAQ indices.

You also need to consider applicable regulations and fees when investing in overseas markets.

Under the Liberalised Remittance Scheme, eligible resident individuals can remit up to ₹2.38 crore (USD 250,000) per financial year, subject to applicable rules.

NASDAQ is a U.S.-based electronic stock exchange that began operations in 1971. It uses computer-based systems to connect buyers and sellers without relying on a traditional physical trading floor.

It is closely associated with technology companies, although companies from other sectors are also listed. Understanding how NASDAQ works, how companies list on it, and how Indian investors can access overseas investments can help you better understand global financial markets.