Nasdaq was established in 1971 as the world's first fully electronic stock market.
The name Nasdaq originally stood for the National Association of Securities Dealers Automated Quotations. The system was created by the National Association of Securities Dealers, now associated with FINRA, to provide automated price quotations for securities traded over the counter.
Unlike traditional exchanges that relied heavily on physical trading floors, Nasdaq used computer networks to distribute quotations. Its launch did not mean every trade was instantly matched electronically in the modern sense, but it represented a major shift from paper-based and telephone-based market practices.
Nasdaq later became a formal stock exchange and became particularly associated with technology and growth companies. Companies such as Microsoft, Apple, and Amazon have been listed on Nasdaq, though the exchange also lists firms from many other industries. The term “Nasdaq” can therefore refer both to the exchange and to its well-known market indexes.