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The Nasdaq The other kind of exchange called virtual exchange or more often over-the-counter (OTC) market is devoid of any kind of physical trading floors or the floor brokers. Nasdaq is the same for the virtual exchange, what NYSE is for the physical exchange. All sorts of transaction and trading are achieved through a network of computers and telephones. Previously it became a custom for all the bigger companies to go for the NYSE, leaving behind other second-tier stocks to be listed on other exchanges. But the scenario has changed completely with the advent of latest technologies in the late 90s that made Nasdaq the primary choice for many larger technology companies that included Dell, Microsoft, Oracle and Intel. This change put the Nasdaq in the level of the NYSE. Here on Nasdaq, there are market markers for the stocks that are nothing but the brokerages as in the NYSE. Through these market markers the shares’ prices are regulated within a limit and bids are thrown continuously to create a potential market for those shares. Market markers can also find the compatible sellers & buyers, but most of the time they are involved in supplementing the requirements of the investors by creating the shares-inventory. We are not describing the whole process in detail, as the detail is available in our tutorial named "Electronic Trading and Market Makers." |
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