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Who Trades Nasdaq Stocks?

April 26, 2017NASDAQ stocks trades

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Who Trades Nasdaq Stocks?

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Trading on NASDAQ is not limited to any fixed number of participants. This allows a large number of firms with widely different business models and trading technologies to connect to the NASDAQ network and compete on an equal basis. Rather than forcing investors to go through a single financial firm to buy or sell stocks, NASDAQ links up a variety of competitors and lets participants choose with whom they are going to trade. All firms trading NASDAQ stocks must be certified with the Securities and Exchange Commission (SEC) and registered with NASDAQ and NASD Regulation. Following are examples of the kinds of firms trading NASDAQ stocks: Market Makers Key to NASDAQ’s market structure are a core group of financial firms called market makers. More than 500 market making firms trade on NASDAQ, acting as distributors for NASDAQ-listed securities. Also known as dealers, market makers are unique in that they commit their own capital to NASDAQ-listed securities then turn around and re-distribu