|
|
|
|
|
|
|
The Nasdaq stock market lists over 5000 domestic and foreign companies, more companies than any other stock market in the world. In 1995, Nasdaq share volume surpassed that of all other U.S. stock markets. |
|
|
|
|
|
|
|
|
What distinguishes Nasdaq is its use of computers and a vast telecommunications network to create an electronic trading system that allows market participants to meet over the computer rather than face-to-face. The other major distinguishing feature is Nasdaq's use of multiple market makers. On Nasdaq the typical stock has 11 market makers actively competing with one another for investor order flow. |
|
|
|
|
|
|
|
|
American Depositary Receipt (ADR) A security, created by a U.S. bank, that evidences ownership of a specified number of shares of a foreign security held in a depositary in the issuing company's country of domicile. The certificate, transfer, and settlement practices for ADRs are identical to those for U.S. securities. U.S. investors often prefer ADRs to direct purchase of foreign shares because of the ready availability of price information, lower transaction costs, and timely dividend distribution. |
|
|
|
|
|
|
|
|
Ask The quoted offer at which a market maker is willing to sell a stock. (See also Best ask.) |
|
|
|
|
|
|
|
|
Best ask The lowest quoted offer of all competing market makers to sell a particular stock at any given time. |
|
|
|
|
|
|
|
|
Best bid The highest quoted bid of all competing market makers to buy a particular stock at any given time. |
|
|
|
|
|
|
|
|
Bid The quoted bid at which a market maker is willing to buy a stock. (See also Best bid.) |
|
|
|
|
|
|
|
|
Deleted A security no longer included in the Nasdaq stock market. |
|
|
|
|
|