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What is the Nasdaq? Understanding the global stock exchange that s home to the fastest-growing, most innovative companies

What is the Nasdaq? Understanding the global stock exchange that s home to the fastest-growing, most innovative companies insider@insider.com (Jim Probasco) © Alan Schein Photography/Getty Images The Nasdaq has a headquarters in New York City, though it s actually an electronic stock exchange. Alan Schein Photography/Getty Images The Nasdaq is the world s largest electronic stock exchange with two closely watched indexes: the Nasdaq Composite and the Nasdaq 100. Technology, consumer services, and other growth stocks dominate Nasdaq and have caused it to outperform other stock markets in recent years.  The easiest way for individual investors to participate in the Nasdaq s volatile but high-performing stocks is via index funds.

What is the Nasdaq? How to understand it and why it s influential

To be listed on Nasdaq, companies pay $47,000 to $163,000 in fees.  Nasdaq s 3,889 listed companies represent 10 broad sectors or industry groups. Most are in the fields of technology, consumer services, and health care.  While Nasdaq has plenty of giant corporations, such as PepsiCo., PayPal, and Amazon, its stocks tend to be more growth-oriented, and less blue-chip, than those on the NYSE. Nasdaq equities have a reputation for innovation, disruption and volatility.  History of the Nasdaq The Nasdaq was created in 1971 by the then-National Association of Securities Dealers (currently known as FINRA). Originally, it was just a quotation system an electronic ticker of bid and ask prices but it began adding trading and transactional systems.

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