Entering into the Stock Exchange

History

In the 20th century, the industrial revolution was accompanied by a true gusto for the stock exchange markets. As the transactions carried out with the NYSE, were not sufficient any more, a parallel market not quoted on the Stock Exchange, i.e. not controlled, was created.

On this market, people exchanged stocks private treaty, i.e. according to the Say’s Law of Markets. At the end of the day, various quotations of each stock were consigned on “pink sheets”. Early in the morning, these quotations were released by one or several intermediaries.

However, because of the lack of transparency and rigour on these exchanges, the government imposed an automation of the transactions, in 1968, automation which announced the birth of the NASDAQ.

Le NASDAQ nowadays

Today, the NASDAQ is a stock exchange market represented by more than 500 stock exchange traders, placing the stocks of more than 6.000 companies. Each trader has a system of terminals allowing him to make available the value of the latest quotations. In order to realise that, the information processing systems of these traders are interconnected. These people imply a competitive call to offer the best sale or purchase price to the investors for a given stock.

To control the stock exchange operations, the NASD (National Association of Securities Dealers) was created to impose certain laws about the exchange of stocks.

Fullness of time, the NASDAQ has specialized in the market of the high-tech and the start-up.