Partial requirements for initial listing on Nasdaq markets

Source: The Nasdaq Stock Market.

Nasdaq has three levels of subscribers. The highest, level 3 subscribers, are for firms dealing, or "making markets," in OTC securities. These market makers maintain inventories of a security and constantly stand ready to buy or sell these shares from or to the public at the quoted bid and ask prices. They earn profits from the spread between the bid and ask prices.

Level 3 subscribers may enter the bid and ask prices at which they are willing to buy or sell stocks into the computer network and may update these quotes as desired.

Level 2 subscribers receive all bid and ask quotes, but they cannot enter their own quotes. These subscribers tend to be brokerage firms that execute trades for clients but do not actively deal in the stocks on their own account. Brokers attempting to buy or sell shares call the market maker (a level 3 subscriber) with the best quote in order to execute a trade. Notice that Nasdaq is a price quotation, rather than a trading, system. While bid and ask prices can be obtained from the Nasdaq computer network, the actual trade still requires direct negotiation (often over the phone) between the broker and the dealer in the security.

Level 1 subscribers receive only the inside quotes (i.e., the highest bid and lowest ask prices on each stock). Level 1 subscribers are investors who are not actively buying and selling securities but want information on current prices.

The Third and Fourth Markets third market

Trading of exchange-listed securities on the OTC market.


Retirement Planning For The Golden Years

Retirement Planning For The Golden Years

If mutual funds seem boring to you, there are other higher risk investment opportunities in the form of stocks. I seriously recommend studying the market carefully and completely before making the leap into stock trading but this can be quite the short-term quick profit rush that you are looking for if you am willing to risk your retirement investment for the sake of increasing your net worth. If you do choose to invest in the stock market please take the time to learn the proper procedures, the risks, and the process before diving in. If you have a financial planner and you definitely should then he or she may prove to be an exceptional resource when it comes to the practice of 'playing' the stock market.

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