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Electronic Data Gathering, Analysis, and Retrieval (EDGAR) An electronic system implemented by the SEC that is used by companies to transmit all documents required to be filed with the SEC in relation to corporate offerings and ongoing disclosure obligations. EDGAR became fully operational in mid-1995. |
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Foreign A non-U.S. company with securities trading on the Nasdaq stock market. |
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Held A situation where a security is temporarily not available for trading (e.g., market makers are not allowed to display quotes). |
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Inside market The highest-bid and the lowest-offer prices among all competing market makers in a Nasdaq security, i.e., the best bid and offer prices. |
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Last-sale reporting An electronic entry by NASD members to the Nasdaq stock market of the price and the number of shares involved in a transaction in a Nasdaq security. The trade must be reported to Nasdaq within 90 seconds of the execution of the trade. |
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Long position Ownership of a security, giving the investor the right to transfer ownership to someone else by sale, the right to receive any income paid by the security, and the right to any profits or losses as the security's value changes. |
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Market maker spread The difference between the price at which a market maker is willing to buy a security and the price at which the firm is willing to sell iti.e., the difference between a market maker's bid and ask for a given security. Since each market maker positions itself to either buy or sell inventory at any time, individual market-maker spreads are not indicative of the market as a whole. (See also Inside market.) |
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Market makers The NASD member firms that buy and sell Nasdaq securities, at prices they display in Nasdaq, for their own account. More than 500 member firms act as Nasdaq market makers. One of the major differences between the Nasdaq stock market and other major markets in the United States is Nasdaq's structure of competing market makers. Each market maker competes for customer order flow by displaying buy and sell quotations for a guaranteed number of shares. Once an order is received, the market maker will immediately purchase for or sell from its own inventory, or seek the other side of the trade until it is executed, often in a matter of seconds. |
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Market Surveillance The department responsible for investigating and preventing abusive, manipulative, or illegal trading practices on the Nasdaq stock market. Considerable resources are devoted to surveilling the Nasdaq stock market. A vast array of sophisticated automated systems reviews each trade and price quotation on an on-line, real-time basis. Off-line computer-based analyses are conducted to evaluate trading patterns on a monthly, weekly, and daily basis. |
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