How the NASDAQ Stock Exchange Works

If you look at the NASDAQ MarketSite Tower from 20,000 feet, you realize that the apparently simple act of providing a stock exchange actually has three separate components: The interface — The place where broker dealers and market makers gain access to the system. The matching engine — A computer that connects buyers and sellers when their prices match. Quote services — Data feeding the buy and sell price quotes that NASDAQ provides. Here is a video on How Stock Markets Work

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