NASDAQ

Founded on February 8, 1971, the NASDAQ was the world’s first electronic trading exchange. With the help of public advertising, which brought the exchange many up and coming technology stocks, NASDAQ became valid stock market. The crash of 1987 furthered advanced the exchange, when they introduced the SOES-Small Order Execution System. There are a few restrictions that apply to those who use SOES.

• Trades can not exceed 1000 shares for a particular stock.
• Can not trade stocks that exceed $250 per share.
• Trader must wait at least 5 minutes to trade the same stock.
• Short selling must comply with the SEC’s rules and be on a zero plus tick basis only.
• Companies and brokers are not allowed to place orders for their own accounts.
• Market makers must honor their advertised bid/ask price.