Over The Counter Stock Market Trading – NASDAQ

The NASDAQ is different from the New York Stock Exchange because the NASDAQ exchange has no physical location nor trading posts. This exchange is 100% electronic and the specialist here is replaced with Market Makers (MM.) These Market Makers are individual firms willing to make a market. The Market Maker is similar to a specialist on the NYSE, but he acts as a dealer, not as a broker. In general, the Market Maker has a position in a particular stock and sells out of his own inventory. Market Makers make their money from a markup or markdown rather than from commissions. The Market Maker regularly publishes Bid and offer quotes and is ready to buy or sell the stock at the quoted prices. These quotes can be seen on a Level II screen.