The bright lights of Nasdaq Tower illuminate Times Square in New York City.

Photograph courtesy NASDAQ

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  • On February 8, 1971, the world’s first electronic stock exchange, NASDAQ, opened for business. Today, NASDAQ is the second-largest stock exchange in the world, second only to its Wall Street neighbor, the New York Stock Exchange.
     
    NASDAQ’s accessible electronic format changed stock trading forever. It lowered the “spread”—the difference between the price a broker is willing to pay a client for a stock (the “bid price”) and the price at which a broker is willing to sell a stock to a client (the “ask price”). 
     
    NASDAQ is still associated with technology, and has an office in Silicon Valley, California. With its slogan “the stock market for the next hundred years,” NASDAQ was the first stock market in the U.S. to start trading online, in 1998. 
  • Term Part of Speech Definition Encyclopedic Entry
    accessible Adjective

    relatively easy to approach, use, or obtain.

    ask price Noun

    lowest price a seller is willing to accept for a good. Also called an offer price.

    bid price Noun

    highest price a buyer is willing to pay for a good.

    broker Noun

    person who buys or sells goods on behalf of another person, in return for a commission.

    NASDAQ Noun

    (National Association of Securities Dealers Automated Quotations System) American electronic stock exchange.

    Silicon Valley Noun

    region in central California (mostly Santa Clara County) where the headquarters of many technology companies are located.

    slogan Noun

    motto or phrase associated with an organization or individual.

    stock exchange Noun

    place where investments (stocks) in goods are bought and sold.

    technology Noun

    the science of using tools and complex machines to make human life easier or more profitable.

    Wall Street Noun

    leading financial district in the U.S., named after the street in lower Manhattan, New York City, where the New York Stock Exchange and many large investment firms are located.