Nasdaq stands for the National Association of Securities Dealers Automated Quotation System. Unlike the New York Stock Exchange where trades take place on an exchange, Nasdaq is an electronic stock market that uses a computerized system to provide brokers and dealers with price quotes.
The Nasdaq Stock Market comprises two separate markets: (1) the Nasdaq National Market that trades the largest and most active securities, and (2) The Nasdaq SmallCap Market that lists a smaller number of emerging growth companies. The Nasdaq Stock Market electronically lists quotes for over-the-counter securities and many New York Stock Exchange listed companies.
For a company to trade on The Nasdaq Stock Market, it must meet a number of listing requirements, such as having a minimum market capitalization and number of publicly held shares.
See also: Financial Exchanges