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What Is NASDAQ?

By Kimberly Amadeo, About.com

(Credit: Spencer Platt/Getty Images)

(Credit: Spencer Platt/Getty Images)

Question: What Is NASDAQ?
Answer: NASDAQ originally was the acronym for the National Association of Securities Dealer Automated Quotation system. NASDAQ was founded in 1971, and provided quotes for Over-the-Counter (OTC) stocks not listed on other markets. For that reason, it became associated in people's minds with technology stocks.

Today, NASDAQ is the largest electronic equities exchange in the U.S. In 2008, it merged with OMX ABO, a Stockholm-based operator of exchanges located in the Nordic and Baltic regions. The new company, NASDAQ OMX Group, lists stocks of over 3,800 companies. It also offers trading in derivatives, debt, commodities, structured products and ETFs. In addition, it provides services to over 70 other stock exchanges in more than 50 countries. For example, it provides exchange technology, which helps in stock trading, clearing and regulatory solutions.

The NASDAQ OMX Group also offers public companies tools to help with investor relations, market intelligence, board relationships, and news dissemination. It helps them raise capital through the U.S. Rule 144A. This rule allows the immediate resale of private placement securities among qualified institutional buyers without requiring public registration.

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