Concept in Definition ABC

In the world of stock Exchange there is a fundamental term, the index stock exchange. It refers to an indicator that expresses the functioning of a sector of the economy or the economy in general. The different indices allow to know if a market goes down, stays stable or goes up.

This information is key for any investor, since the different indices act as if they were a thermometer of the economy.

Historical origin of the NASDAQ

In 1970, the United States Congress petitioned the Securities Market Regulatory Commission for an analysis on the safety in the financial markets. The study carried out concluded that the stock markets were not sufficiently transparent and secure. Because of this, a group of brokers from the United States founded NASDAQ in 1971.

Relevant data to distinguish

- NASDAQ Stock Market is the company that manages the different NASDAQ indices and is part of the companies included in one of its specialized indices. It is a for-profit company that is governed by its shareholders.

- It is the second largest stock exchange in the United States (the first is the New York Stock Exchange or NYSE).

- It stands out for the fact that it only operates electronically and in an automated manner. In this sense, it was the world's first electronic exchange.

- Your volume of exchange per hour is higher than any other stock exchange in the world.

- It has two very representative indices: Nasdaq 100 and Nasdaq Composite. In the first are the 100 largest non-financial companies in the world, such as FOX, Facebook, eBay, Microsoft, Netflix or Paypal (all the corporations that make up this index have a minimum capitalization of 500 million dollars).

- In 1971 a group of brokers founded the seed of this stock market entity. Its first name was the National Association of Security Dealers (NASD). In 1987 the acronym was expanded and became the current NASDAQ (National Association of Security Dealers Automated Quotions).

- Since 1992 it operates with different schedules and this circumstance has favored its recognition at the international level.

- Those who participate in their investments They do not do it directly, but must contact the intermediation of a specialized broker.

- Its headquarters are in a luxurious building in Times Square in New York City. Its emblematic location has made it a true attraction tour.

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