Research On The Development Of NASDAQ Securities Market

The NASDAQ Securities Market and the predominance in its system construction attracted many enterprises of high technology. Through financing,these enterprises have achieved their redevelopments,which made a rapid development of American high-technology industry and brought a rapid and continuous increase of American economy. The author researched on the basic characteristics and system construction of NASDAQ,and brought forward that the security market construction of our state shall focus on the system innovationï¼›gradually construct and complete a market system with various levelsï¼›and make great efforts to construct a Chinese NASDAQ that could provide a financing flat station to our high-technology industry. There are total five parts in this thesis:In the first part,the author analyzed the history and the development trend of NASDAQ Securities Market through the emergence of NASDAQ security marketï¼›compared with the New York Security Market,the author drew the conclusion that the NASDAQ Security Market has an important position in the development of today's American securities markets. In the second part,the author made a research on the main characteristics of American NASDAQ Securities Market including the following five aspects:1. The levels of the market structure: the NASDAQ has two parts: the national market and the small cap market. The small cap market faces those middle and little enterprises that have rapid development,in which the high-technology enterprises take a relatively high proportionï¼›the national market faces the big enterprises in the world and those enterprises developed from the small cap market. 2. The normative operating system: It is easy to enter the NASDAQ Securities Market but difficult to exit it. The detailed performances are: 1) implement a strict information disclosure systemï¼›2) pay attention to the guarantor for coming into the marketï¼›3) have high requirements on the treatment of listed companiesï¼›4) implement a restriction system for leaving the market. 3. Advanced technical methods: the NASDAQ Securities Market is a market equipped completely with electronics,which uses the most advanced mechanics of communication to transfer price information to more than 20 thousand terminals of the world. In 1997,NASDAQ established the high-efficient Electronic Communication Networks (ECN),which can ensure every computer terminal receive all open dealing information. And the daily marketability was increased to 4 billion stocks each day. 4. The systemic market supervision: in supervision,NASDAQ has developed a set of thorough management and supervision system: first,insist on the self-discipline management. National Association of Securities Dealers (NASD) is the biggest self-discipline organization in American securities industry. The brokers,listed companies,and investors who participated into the businesses of NASDAQ must accept the supervision of NASD. Second,insist on cooperation. In market supervision,NASD pays attention to keep connections with the Securities and Exchange Commission (SEC),Federal Bureau of Investigation (FBI),American Bar Association (ABA),Taxation Bureau and other departments. And it often cooperates with these departments to find out errors or criminal facts in the market and give punishment accordingly. Third,pay attention to develop the functions of the computer supervision system. Fourth,emphasize the inside supervision of the securities companies. 5. The global development objectives: Frank zarb chairman of NASD,has expressed that the final objective of NASDAQ is to establish an electronic worldwide stock market which can benefit all enterprises and investors of the world. In the third part of the thesis,the author analyzed emphatically the central dealing system----- Market maker rule. The author believed that the Market maker rule is the power resource for the development of NASDAQ. The system has important influences on the fluidness,price fluctuation,transaction costs and mark...