NASDAQ, the world's first electronic stock market, began operations in which year?
- A.1961
- B.1971
- C.1981
- D.1991
Correct answer
Explanation
The correct answer is B, 1971. NASDAQ opened in 1971 in the United States as the world's first electronic stock market, with quotations carried on a computer network instead of a trading floor, and it now lists most of the large American technology companies; its benchmark is the NASDAQ Composite. Options A, C and D are wrong because they are a decade out in either direction. The year is best remembered against two Indian dates: the National Stock Exchange, India's first fully screen-based exchange, was incorporated in 1992 and began trading in 1994, more than twenty years after NASDAQ, and the Bombay Stock Exchange moved from the open outcry ring to electronic trading in 1995 with its BOLT system. A related fact is that NASDAQ stands for the National Association of Securities Dealers Automated Quotations, and that it was the first market to carry out trading without a physical floor, which is why it is called the first electronic stock market of the world.
Read the full article: Stock Exchanges and Indices of the World: Sensex to Nikkei
Practice Questions
View allWhich is the oldest stock exchange in Asia?
- A.National Stock Exchange
- B.Bombay Stock Exchange
- C.Tokyo Stock Exchange
- D.Hong Kong Stock Exchange
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It was established in 1875 as the Native Share and Stock Brokers Association and functions from Dalal Street in Mumbai, which makes it the oldest stock exchange in Asia; it was also the first exchange in India to receive permanent recognition from the Government under the Securities Contracts (Regulation) Act…
Read the full explanation →How many companies make up the BSE SENSEX?
- A.20
- B.30
- C.50
- D.100
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The SENSEX, short for Sensitive Index, is composed of 30 large, well established and actively traded companies listed on the Bombay Stock Exchange, and since 2003 it has been calculated on the free-float market capitalisation method, which counts only the shares actually available for trading.
Read the full explanation →What is the base year of the BSE SENSEX, and its base value?
- A.1978-79, base value 100
- B.1980-81, base value 100
- C.1991-92, base value 1000
- D.1995-96, base value 1000
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The Sensex was launched in 1986 and its series was worked back to the base year 1978-79, for which the index value is taken as 100, so that a Sensex reading shows how many times the market has grown since that base.
Read the full explanation →The Dow Jones Industrial Average is the benchmark index of the stock market of which country?
- A.United Kingdom
- B.United States
- C.Germany
- D.Japan
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The Dow Jones Industrial Average tracks 30 large American companies and is quoted for the New York Stock Exchange; it was created by Charles Dow in 1896 and is the oldest index of share prices still in use, the broader American benchmark being the S&P 500 and the technology-heavy one…
Read the full explanation →Nikkei 225 is the share price index of which country?
- A.China
- B.South Korea
- C.Japan
- D.Singapore
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The Nikkei 225 is the benchmark index of the Tokyo Stock Exchange and is named after Nihon Keizai Shimbun, the newspaper that has compiled it since the 1950s; it covers 225 leading Japanese companies.
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