Basics: What is Nasdaq?
Let’s get back to basics! This series unpacks commonly misunderstood terms so you can level up your financial vocab. Today: Nasdaq! One of those words that looks weirder every time you type it. This will be torture. Nasdaq. Nasdaq. Ugh. Anyways. What is Nasdaq? It was originally affiliated with the governing body that created it, the National Association of Securities Dealers (NASD), but in 2006 it separated to become a national securities exchange independent from NASD. The following year, Nasdaq teamed up with a group called OMX; this group—now called Nasdaq OMX—is currently the biggest exchange company in the world. Our pals at Investopedia have a more detailed timeline if you’d like to read more. That’s the origin story of the now very popular Nasdaq, a market which lists the securities of a ton of high profile and well-known companies. There’s also the Nasdaq Composite Index, an index which tracks the performance of stocks listed on the Nasdaq exchange. What Are Securities?Good question! There are three types of securities: debt securities, equity securities, and hybrid securities. Each of which have unique ways for corporations to raise money, and for owners of securities to