Founded in 1971, NASDAQ today hosts many of the most valuable companies in the world — including Apple, Microsoft, Amazon, and Google’s parent company, Alphabet. It’s become synonymous with tech-driven investing and a symbol of modern market dynamics.
Unlike the New York Stock Exchange (NYSE), NASDAQ is entirely electronic, using a network of computers and market makers to match buy and sell orders. It supports a wide range of securities, from common stocks and ETFs to options and more.
Trading on NASDAQ happens through a decentralized model, where multiple participants (called market makers or electronic communication networks) compete to provide the best prices, improving efficiency and liquidity.
It's important to distinguish between the NASDAQ exchange (the actual marketplace) and the Nasdaq Composite Index, which tracks the performance of over 3,000 stocks listed on the exchange. This index is a widely followed benchmark for the technology sector and growth stocks in general.
Another related index is the NASDAQ-100, which includes the 100 largest non-financial companies listed on the NASDAQ — like Meta, Nvidia, and Netflix.
NASDAQ is home to a broad range of sectors but is best known for:
It’s often seen as a place for innovation, hosting both massive blue-chip firms and newly listed IPOs.
NASDAQ has expanded beyond U.S. borders, operating in over 50 countries, and even providing technology infrastructure for other global exchanges. Its influence reaches deep into both traditional markets and emerging sectors like fintech, AI, and cloud computing.