How Does NASDAQs Market Structure Benefit Listed Companies?
Through its unique framework of multiple market participants, NASDAQ provides listed companies’ securities with ready access to investors, visibility in the marketplace, and market conditions that promote immediate and continuous trading: Liquidity Liquidity is best defined as the ease with which stocks can be bought and sold in the market. By encouraging trading among a virtually unlimited number of market participants, NASDAQ offers an environment that facilitates greater liquidity. Depth of Market Depth of market refers to the total amount of money market makers have invested in a single security and is related to the number of market participants trading in the security. However, even a few market participants can provide abundant depth of market by committing to buy or sell large quantities of a security. Knowing there is depth of market can reassure investors of a stock’s marketability, especially during periods of heavy trading volume. Transparency Transparency, the ability to v
