A stock exchange does not own shares. Instead, it acts as a sort of high-tech market where buyers connect with sellers. Every public stock trades on one of several possible exchanges such as the NASDAQ or AMEX. The primary function of an exchange is to provide sellers a place to liquidate their share holdings. NASDAQ and AMEX account for the trading of a major portion of equities in North America and the world. On the other hand AMEX and NASDAQ are very different in the way they operate and in the types of equities that trade upon them.
NASDAQ is an electronic exchange, is also from time to time called "screen-based" for the reason that buyers and sellers are linked only by computers over a telecommunications network. Market makers, also known as dealers, carry their own inventory of stock. They stand ready to buy and sell NASDAQ stocks, and they are required to post their bid and ask prices. NASDAQ has exceeded the NYSE in the number of both listed companies and shares traded.
NASDAQ was founded in 1971 by the National Association of Security Dealers. When NASDAQ began trading in 1971, it was the first electronic stock market in the world. In which divested it in a series of sales in 2000 and 2001. NASDAQ is owned and operated by NASDAQ Stock Market, Inc. NASDAQ is the largest electronic screen based equity securities market in the United States. NASDAQ has roughly 3200 companies; it lists more companies and on average NASDAQ trades more shares per day than any other US Market. It is home to companies that are leaders across all areas of business technology, retail, communications, financial services, digging, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks. NASDAQ allows multiple market participants t ...