The OTC turnover index (NASDAQ)

The National Association of Securities Dealers calculates a number of indices representing both OTC turnover in general, and of corporations individual industries. The main index is the NASDAQ, which are included as a component stock of about 3,500 corporations (other than listed on the stock exchanges). This index is an index weighted by the market value of its components. It was first calculated in February 1971.
Transactions in options and futures on this index are carried out on the Chicago Mercantile Exchange.
Falling stock index leads to a drop in the national currency.

NASDAQ.SYSTEM
U.S. OTC market dealers are connected with the sellers and purchasers ¬ securities via the automated Institute ¬ formation about the quotes of the National Association of Securities Dealers NASDAQ. This system transmits the most recent courses of supply and demand to 5100 shares, selected from among the most active ¬ but sold over the counter. Facilitating the establishment of con ¬ cycles between sellers and buyers, NASDAQ has made tor ¬ merce on the OTC market continuously. To conclude the transaction ¬ ki securities not listed on a system of NASDAQ, ¬ lam buyers and sellers have to find each other on the reference edition ¬ tions or access to certain dealers of the stock market. When ¬ approximately 2,900 shares of all listed in NASDAQ, meeting the convent ¬ dy requirements for financial parameters of the issuer and the activity is about ¬ Company, rendered in a special list - National market system ¬ mu in the NASDAQ (NASDAQ / NMS). Transactions on shares of that list carefully monitored by dealers and investors, so the details of their quotes are published in the financial press quotes separately from other securities of OTC turnover.

NASDAQ provides three levels of service. ¬ The first provided an opportunity to retail brokers and their customers to track the terminal, located in the very brokerage firm, or not far from it, the highest current price of the offer to purchase and the lowest current asking price for the sale. In some cases the asking prices for buying and selling - of two hundred ¬ ron each quote - can be provided by various dealers ¬ authors. The customer may not always be sure that his order will be executed at the displayed price.

The second and third levels show a firm quotes for all ¬ registered dealers of the system. However, the third level indicated ¬ The caller also changes in the quotes as the market price. Firms that do not set up bilateral to ¬ portation, but receive orders customers may prefer second-level services, which provides them with access to information on the best market prices. Some institutional investors ¬ tors, particularly insurance companies use the services of the second ¬ cerned level to accurately assess the value of its portfolio securities and to monitor the activity of dealers, such as finding out who is constantly offering the best market prices. Those who exhibited bilateral quotations must be a subscriber con ¬ ing the third level, as soon as this level allows dealers ¬ py to make or change the quotes that are displayed by the system.

NASDAQ system is divided into two parts: the issue in the conventional system and the emission in the NASDAQ National Market System (Na ¬ tional Market System - NMS). NMS, being the upper tier of NASDAQ, takes the most well-known and top-selling issue. At the time of its criteria for inclusion in the course bulletin was much ¬ nd more stringent than the usual system of NASDAQ. However, in 1990 the Board of Directors proposed to double the usual requirements for inclusion in the course bulletin NASDAQ, which would bring together the oc ¬ novnye criteria for the two parts of the system.

There are also some alternative rules CHANGES ¬ tion in the course bulletin, which apply to companies that do not meet these criteria, but the acting is not less than 3 years old, having larger assets and more shares outstanding in comparison with the above criteria.

Information reporting NMS similar reporting on emissions of shares that are traded on exchanges. These accounts shall be published in the press of business, and include: the highest and self ¬ mye low prices in the past 52 weeks, the symbols of companies in the NASDAQ, the dividend rate, the ratio of market price-earnings ratio of the volume, the highest and lowest prices at the close of trade and net changes during the day. In other words, all this information is that most investors get ¬ Institute for emissions, as quoted on the New York Stock Exchange or the American Stock Exchange, also legkodos ¬ avail able on emissions, quoted National Market System.

The volume of trading in the NASDAQ NMS system, and has long been ahead of sovo ¬ kupno trade on the American Stock Exchange and regional ¬ governmental exchanges. This market share is the third largest in the world, behind only New York and Tokyo stock exchanges.

An important tool in the American counter trading case ¬ RAT electronic recorders current transactions, combined in a nationwide network of Inter Market Trading System. Efforts to identify suspicious transactions previously carried out manually, now largely computerized. In electronic trading NASDAQ involved 50 control ¬ ditch, using 40 special electronic product designed to track suspicious transactions.

In the case of "no" automated methods of supervision con ¬ trolery NASDAQ conduct additional investigation, requesting ¬ Shivaya necessary information directly from the transaction counterparties ¬ stone. Every year they have to deal with many thousands of cases of establishing abuse. About 250 of them, a decision is to impose a fine or license revocation.