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  • The Nasdaq is the world's largest electronic stock exchange with two closely watched indexes: the Nasdaq Composite and the Nasdaq 100.
  • Technology, consumer services, and other growth stocks dominate Nasdaq and have caused it to outperform other stock markets in recent years.
  • The easiest way for individual investors to participate in the Nasdaq's volatile but high-performing stocks is via index funds.
  • Visit Business Insider's Investing Reference library for more stories.

    • The Nasdaq is the largest and oldest electronic stock market in the world, meaning all of its buying and selling happens electronically, rather than on a physical trading floor. Short for National Association of Securities Dealers Automated Quotations, the Nasdaq is the second-largest stock exchange globally based on the market capitalization of its listed companies - exceeded only by the New York Stock Exchange (NYSE).

    A pioneer in online operations when it launched in 1971, the Nasdaq provided a listing service for companies that had previously only traded over-the-counter (OTC). It quickly became the home for many new and innovative high-tech startups, including Microsoft and Apple.

    Today, the Nasdaq plays an important role in the US and global economy, with its two major indexes - the Nasdaq Composite and the Nasdaq 100 - closely watched barometers of business.

    To help you make sense of it all, here's what you need to know about the Nasdaq, from what it is to smart strategies for investing.

    What is the Nasdaq?

    The Nasdaq is technically a dealer market where both buyers and sellers trade with a market maker in a particular stock or security, unlike an auction market (like the NYSE) where buyers and sellers trade with each other through a broker.

    Nasdaq fast facts

  • 3,889 listed companies trade on Nasdaq.
  • Nasdaq's listed companies are collectively worth $11.23 trillion.
  • Over 4.5 billion shares are traded daily on Nasdaq.
  • To be listed on Nasdaq, companies pay $47,000 to $163,000 in fees.

    • Nasdaq's 3,889 listed companies represent 10...

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