NASDAQ which stands for National Association of Securities Dealers and Automated Quotation is a global electronic market platform that allows trading activities of securities. It was established by National Association of Securities Dealers (NASD).

NASDAQ applies when trading on securities on electronic basis.

NASDAQ is necessary to increase the marketability securities for the various companies all over the world.

How does NASDAQ work?

NASDAQ operates as follows; there are three aspects that govern trading activities in this electronic market,

 The interface -- The window which allows brokers to access the market for trading purposes

The matching engine is a computer, which links the simultaneous buyers and sellers when the price is the same. In other words, when the state of willing buy willing seller is achieved

Quote services is the NASDAQ provision of services pertaining to buying and selling data available

About the Author - Dr Geoffrey Mbuva(PhD-Finance) is a lecturer of Finance and Accountancy at Kenyatta University, Kenya. He is an enthusiast of teaching and making accounting & research tutorials for his readers.