THE BEECHMONT CREST ONLINE GUIDE TO STOCKS AND INVESTING
NASDAQ
The NASDAQ is the largest over-the-counter (OTC) market. (NASDAQ = National Association of Securities Dealers Automated Quotation system).
The NASDAQ is an electronic market; brokers can check quotes and execute trades via a computerized system. About 3,200 companies are listed on NASDAQ. The NASDAQ is “tech-heavy” and includes well-known IT firms such as Microsoft and Intel.
The NASDAQ is technically an exchange (and is classified by the SEC as such). The exchange function of the NASDAQ includes two markets: National Market Securities and the Small-Cap Market.
- The NASDAQ National Market includes the largest firms like Cisco, Intel and Microsoft
- The NASDAQ Small-Cap Market includes smaller companies that are less capitalized (hence the term “small caps”) and do not qualify for listing on the National Market.