Nasdaq. What is the Nasdaq? Describe how trades are carried out on the Nasdaq.

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Part 1

(Select the best answer below.)

A.

The Nasdaq market is another major stock market where about 1.8 billion shares a day are bought and sold. Nasdaq stands for the National Association of Securities Dealers Automated Quotations. Nasdaq operates entirely on a physical trading floor, without an electronic system.

B.

The Nasdaq market is another major stock market where about 1.8 billion shares a day are bought and sold. Nasdaq stands for the National Association of Securities Dealers Automated Quotations. Nasdaq operates entirely as an electronic system without a physical trading floor.

C.

The Nasdaq market is a minor stock market where about 1.8 million shares a day are bought and sold. Nasdaq stands for the National Association of Securities Dealers Automated Quotations. Nasdaq operates entirely as an electronic system without a physical trading floor.

D.

The Nasdaq market is another major stock market where about 1.8 billion shares a day are bought and sold. Nasdaq stands for the National Association of Stock Dealers Against Quotations. Nasdaq operates entirely as an electronic system without a physical trading floor.

Part 2

Describe how trades are carried out on the Nasdaq.(Select the best answer below.)

A.

Trades are carried out in person at the New York Stock Exchange. Broker-dealer firms stand ready to buy and sell a particular security on a continuous basis at a publicly quoted price to anyone who comes to the Exchange.

B.

Trades are carried out over a computer network by market

makers,

which are broker-dealer firms that stand ready to buy and sell a particular security during business hours at a price slightly over the publicly quoted price.

C.

Trades are carried out over a computer network by market

makers,

which are broker-dealer firms that stand ready to buy and sell a particular security on a continuous basis at a publicly quoted price.

D.

Trades are carried out over a computer network by stock brokers, who work for broker-dealer firms that stand ready to buy and sell any security on a continuous basis at a publicly quoted price.