You will probably know that the NASDAQ Stock Exchange is different from the NYSE – the New York Stock Exchange. This article will go some way towards explaining why this is, as well as revealing the mystery of NASDAQ Securities.
Firstly it is important to realize that the NYSE and the NASDAQ are two very different beasts. For example the NASDAQ deals in securities rather than in other types of stocks and shares. It is an ‘electronic securities exchange', so if you are trading on the NASDAQ you are trading in securities. There is another clue to the fact the NASDAQ exchange deals only in securities; it is run by the National Association of Securities Dealers.
The types of securities dealt with on this exchange are domestic in nature. The primary index on the NASDAQ exchange is the NASDAQ 100. As the name would imply this deals with the top one hundred securities on its books. You can expect to see the likes of Google and Microsoft in this list.
The main definition of the securities on the NASDAQ Stock Exchange is that they are non-financial in nature. You will not find securities associated with banks here for example. But other financial companies are also not on the list, so basically anything to do with a financial institution would be found elsewhere.
Lots of the NASDAQ securities are related to more modern businesses though, such as those involved in computers and their various components, as well as biotechnology. With this said retail businesses can also be found on the NASDAQ 100 Index.
Another chief thing to remember with the NASDAQ securities is that they can be both national and international in nature. The NASDAQ is not just concerned with businesses and organizations in America – it deals with interests all over the world.
Depending on what kind of stocks you want to start trading, you may well end up trading them on the NASDAQ exchange if you go for securities. This is because an individual company can only ever trade their shares on a single exchange.
If you want to trade shares of a particular type then, you may have to explore the ins and outs of the NASDAQ Stock Exchange in more detail. If securities in the computer and retail industries appeal to you, the NASDAQ is the place to go to find out which ones suit you the most.
No comments:
Post a Comment