Nasdaq was founded in 1971 and became closely associated with the dot-com crash.
Nasdaq began as an automated quotation system operated by the National Association of Securities Dealers. Unlike a traditional floor-based exchange, it initially supplied electronic quotations for over-the-counter securities. It later developed into a major electronic stock market and listing venue.
During the late 1990s, many internet and technology companies attracted intense investor enthusiasm. The Nasdaq Composite rose rapidly, reaching a closing peak of 5,048.62 on March 10, 2000. As expectations changed, technology shares fell sharply, and the index lost roughly 78 percent by October 2002.
The dot-com crash was not a collapse of Nasdaq as an institution. Nasdaq continued operating and remains a major exchange group. The term usually describes the fall in technology and internet-related share prices, while the Nasdaq Composite is the index most often used to measure that market episode.