In order to elucidate NASDAQ for beginners, it’s important to first understand how the stock exchange works. Once, the investor understands this process, it becomes very easy to relate to different terms like NASDAQ, NYSE, securities, S&P 500, Dow Jones etc. The acronym for NASDAQ stands for ‘National Association Of Securities Dealers and automatic Quotations’.
From the above acronym, we will figure out that NASDAQ is an association wherein the quotes of stocks being traded within the stock exchange are sent to the dealers in an automatic manner. The dealers can then make use of those real time quotes to form buy or sell decisions. NASDAQ may be a completely online trading system. Unlike ny stock market (NYSE), there’s no trading which happens physically on the exchange floor. This also eliminates the necessity of jobbers and other market makers since the dealers can trade directly online visit our web at http://www.volatility75.net/strategy.html.
American stock market was later acquired by the NASDAQ which made NASDAQ the most important trading system within the world in terms of number of trades happening during a day. NASDAQ is additionally popular among the traders because it’s more technology and technology related stocks than the other exchange. like all other exchange, NASDAQ has its own indices within the exchange. the foremost popular indices out of these are NASDAQ 100 and NASDAQ Q. the opposite indices which compete with NASDAQ index are S&P 500 and Dow Jones though they represent a broader set of companies within the us of America. There are set rules and regulations which require to be followed before a corporation are often listed on NASDAQ though these rules aren’t as stringent as those present for NYSE.
These two indicators can provide an honest picture of the market trading before and after hours of market hours trading. it’s recommended that beginners use caution while making inferences from these indicators. On the opposite hand, these indicators become very handy for seasoned and professional traders and investors.