The history of NASDAQ
The Nasdaq (National Association of Securities Dealers Automated Quotations) is a stock exchange that was founded in 1971. It was the first electronic stock market and it is the second-largest stock exchange in the world by market capitalization.
The Nasdaq began as an electronic bulletin board system that was used to quote prices of over-the-counter (OTC) securities. It was created to help brokers and dealers more easily trade OTC stocks, which were not listed on traditional exchanges like the NYSE.
In the 1980s, the Nasdaq began to list more companies and grew in popularity as a place to trade technology and growth stocks. This led to the creation of the Nasdaq 100 index, which is a market capitalization-weighted index that tracks the performance of the 100 largest non-financial companies listed on the Nasdaq.
In the 1990s, the Nasdaq experienced a period of tremendous growth and innovation, driven by the dot-com boom. Many technology and internet companies, such as Microsoft, Intel, and Cisco, listed on the Nasdaq and helped to drive its growth. However, the dot-com bubble burst in 2000, and the Nasdaq experienced a significant decline in value.
Since then, the Nasdaq has continued to evolve and adapt to new technologies and market conditions. It has become a global exchange and has added new products and services such as options trading, derivatives and exchange-traded funds (ETFs) to its offering. In 2020, the market capitalization of the Nasdaq was over $15 trillion.
To sum up, Nasdaq is a stock exchange founded in 1971, it was the first electronic stock market and it is the second-largest stock exchange in the world by market capitalization. It began as an electronic bulletin board system for over-the-counter securities and in the 1980s it started to list more companies and grew in popularity as a place to trade technology and growth stocks. In the 1990s, Nasdaq experienced a period of tremendous growth and innovation driven by the dot-com boom, but it also experienced a significant decline in value with the dot-com bubble burst in 2000. Since then, Nasdaq has continued to evolve and adapt to new technologies and market conditions, becoming a global exchange and adding new products and services to its offering.
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