Introduction
The NASDAQ, which is the second-largest stock market by market capitalization, is behind only the New York Stock Exchange. It was founded as the world’s first electronic stock exchange in 1971. It is located near Times Square, Manhattan City. It is home to many of the most innovative companies and technology-oriented exchanges in the world. We will be taking a deep dive into the unique features of the NASDAQ and its history as well as how it functions. This post will also provide information for investors about how they can invest on it. We will also examine the top companies it lists and what you need as an investor to consider investing here.
History of NASDAQ
1971 was the year that the NASDAQ became the first worldwide electronic stock market. Stock trading used to take place on a physical trading platform where brokers met physically to trade shares. This was before the NASDAQ revolutionized stock trading by using computers to process orders faster and more efficiently.
Initially, the NASDAQ housed mainly smaller technology-oriented firms that weren’t listed on bigger exchanges like NYSE. With time, however large corporations started listing on the NASDAQ and eventually became the home of some of the biggest names in the world like Alphabet, Amazon, and Apple.
How NASDAQ Works
The NASDAQ Stock Exchange is a stock trading platform where buyers can sell shares of publicly traded companies. What makes the NASDAQ different is its electronic trading system. All trading happens electronically rather than on physical trading floors.
Typically, investors use a broker in order to buy and sell shares on NASDAQ. Brokers can connect directly to the NASDAQ’s computer network to place orders. The exchange matches buyers or sellers based in price and quantity.
The NASDAQ market is open Monday through Friday at 9:30 am to 4:00 p.m. Eastern Time. Investors have the ability to buy and sell shares online in real time, as prices change based on supply/demand.
Top Companies on NASDAQ
Some of the best and most innovative businesses worldwide are found on the NASDAQ. Here is a listing of some of the most prominent companies currently trading on this stock exchange.
Apple (AAPL), Apple is the world’s most valuable company with a value of over $2 trillion.
Microsoft (MSFT). Microsoft is another tech titan with an estimated market capital of $1.8 trillion.
Amazon (AMZN), the e-commerce kingpin, boasts an estimated market value of more that $1.5 trillion.
Alphabet (GOOGL), Google’s parent company, has a market cap of over $1.4 trillion.
Facebook (FB) – The social media giant boasts a $800 Billion valuation.
As you can see the NASDAQ is home some of world’s most valuable and largest companies. This presents investors with an extraordinary opportunity to invest into companies with high growth potentials.
What Investors Should Know
These are some important things to keep in mind if your goal is to invest in the NASDAQ. First of all, know that investing in stock markets can be risky and may result in your losing funds.
NASDAQ prices are more volatile than NYSE, which could mean that investors face both risk and opportunity depending on their investment goals.
It is vital to do your due diligence before making any investment in any company. Investing with individual firms is risky even though the NASDAQ has many successful businesses. You should do thorough research before investing in any company.
Spreading your investments can help lower your risk. You may be able make more money long-term by spreading your risk and diversifying your portfolio.
Investors should also consider fees.
To trade stocks on the NASDAQ, you have to pay a fee to your broker.
These fees can have a big effect on your returns over the long term.
Remember that brokers may charge you extra fees to keep your account up to date.
You should learn as much as you can about investing.
Conclusion
The NASDAQ is a global-recognized stock trading platform that has been at cutting edge of technological innovation for over 70 years. Investors seeking high growth potential are attracted to the NASDAQ because it is home to some of world’s most successful and valuable companies.
However, investing on the NASDAQ is not without risks. You should do your due diligence to find out any potential downsides and take precautions before making an investment. You can make a long-term investment in NASDAQ by diversifying and being aware about fees.
