The National Association of Securities Dealers Automated Quotations (NASDAQ) is an online public marketplace for trading stock.
NASDAQ is an index of approximately 5,000 stocks that predominantly includes large technology and biotech corporations. Some of the largest companies on NASDAQ by market capitalization are Apple, Microsoft, Alphabet (parent of Google), Amazon, and Intel.
Companies may desire to be listed on NASDAQ because it gives them greater access to capital and gives their stock greater liquidity. Only public companies may be listed on NASDAQ, meaning companies must complete an Initial Public Offering and satisfy other Securities and Exchange Commission (SEC) regulations for public companies. Further, NASDAQ has its own listing requirements. This includes meeting requirements for financial metrics such as market capitalization; satisfying liquidity requirements, namely ensuring that enough shareholders hold their shares unrestricted; and adhering to NASDAQ corporate governance regulations. An outline of NASDAQ’s listing requirements can be found here.
[Last updated in January of 2022 by the Wex Definitions Team]