Journey Across
the Financial System
Uncover How Nasdaq is Shaping the Global Financial System
The financial system is highly complex and ever evolving, comprised of roads and intersections that propel the flow of capital across the globe.
From investors to worldwide markets, from banks to businesses, every interaction shapes the future of our financial system.
Nasdaq is at the heart of this journey. We are the critical infrastructure that enables the smooth and efficient functioning of this system—the gateway to capital markets—and the technology that weaves it all together.
Journey Across
the Financial System
Join us as we explore the forces that shape the global financial system and how Nasdaq connects it all.
Markets
How Nasdaq provides access to capital for new founders and newly-listed public companies.
Markets
How Nasdaq provides access to capital for new founders and newly-listed public companies.
Participation
How Nasdaq’s trading data and technology helps investors big and small.
Participation
How Nasdaq’s trading data and technology helps investors big and small.
Modernization
How Nasdaq helps create and maintain resilient markets across the globe.
Modernization
How Nasdaq helps create and maintain resilient markets across the globe.
Capital
How Nasdaq helps banks combat financial crime.
Capital
How Nasdaq helps banks combat financial crime.
Public Markets
From Start Up
to Scale Up
Founders looking to scale their companies can explore various avenues to secure capital. They can engage in series funding or connect with venture capital firms or angel investors who specialize in investing in early-stage companies. They can also choose to apply for grants or loans specifically designed for startups and small businesses.
of founders serviced through the Milestone Makers program are from under-resourced populations.
of founders served through the Milestone Makers program are from under-resourced populations.
Some founders will look to grow their business before meeting with top investors. Accelerators and incubators offer programs that provide funding, mentorship, and resources to help startups grow.
Other programs like the Nasdaq Entrepreneurial Center’s Milestone Makers program selects a small cohort of founders to receive individualized business mentoring and resources to help founders set and hit milestones critical to company success.
Preparing
for an IPO
After scaling their businesses, founders may choose to prepare for an initial public offering (IPO). Founders discuss with their stakeholders when to go public based on the company’s performance, revenue and macroeconomic conditions.
Nasdaq has had the highest IPO win-rate for 42 consecutive quarters.
Going
Public
Once a company is ready to go public it selects an exchange, such as Nasdaq, and decides how it wants to go public: via an IPO, direct listing, or special purpose acquisition company (SPAC).
companies are listed on Nasdaq.
The founders then go on an IPO roadshow, showing off their business to prospective investors, and file their intended securities offering disclosures with the U.S. Securities and Exchanges Commission (SEC). The SEC ensures the company meets all regulatory requirements to enter the public market.
Nasdaq helps its prospective listings build their investor relations programs and prepare for life as a public company through our market-leading investor relations intelligence, governance, sustainability and front-office services.
The First
Trade
Companies that choose to list on Nasdaq join some of the most innovative companies in the world, on the most active stock exchange in the world, with the deepest liquidity pool.
Over 5,200 total listings with a market value of nearly $31 trillion USD choose to list on Nasdaq’s U.S., Nordic and Baltic exchanges.
On IPO day, Nasdaq’s IPO Execution team facilitates the first trade, utilizing its proprietary technology to provide transparent price discovery to investors.
"We believe in transparency and efficiency. To be truly efficient, we have modernized the process of leveraging technology and taking the middleman out of the equation.”
Jay Heller
Head of Capital Markets, Nasdaq
Growing as
a Public Company
With access to the public markets, companies have new avenues of capital to help drive growth that can take their organizations to the next level.
Going public creates new investor relations and board requirements, as well as new disclosure and regulatory obligations. Nasdaq provides tools and services to help companies navigate this transition, helping them balance new requirements while staying competitive.
Expanding
Horizons
Companies can also expand their shareholder base by listing on multiple exchanges. For companies listed on Nasdaq, they may choose to expand their reach in Europe by listing on the Nasdaq Stockholm exchange.
of the world's top 25 exchanges are powered by Nasdaq’s technology.
Listing internationally can access a broader and more diverse investor base, enhance visibility in global markets, and potentially attract more liquidity and capital from international investors.
Market Participation
Getting Started
with Investing
Investing in the stock market can provide a powerful vehicle to build wealth and grow your net worth.
Markets offer investors a variety of securities to add to their portfolio, from equities like Apple (AAPL) to more complex securities like exchange-traded funds (ETFs) and options.
of Americans own stock.
of Americans own stock.
Tracking
the Markets
In addition to individual equities, ETFs and options, indexes are a useful investment tool that act as a basket of securities through which investors can track the performance of different market sectors or themes.
diverse indexes are calculated by Nasdaq.
diverse indexes are calculated by Nasdaq.
For example, The Nasdaq-100 Index® (NDX®) tracks 100 of the largest and most innovative non-financial companies listed on the Nasdaq Stock Market based on market capitalization.
These companies are disrupting, defining and driving the modern economy, but indexes can track anything from biotechnology and semiconductors to agriculture and farming.
Making Informed
Investment Decisions
While many retail investors decide which securities to buy and sell based on their own research, some look for outside help.
Some may look at a company’s financial statements or stock performance to determine if it is the right fit for their portfolio. Others will hire a financial advisor, who can use market analysis tools like the Nasdaq Dorsey Wright Research Platform to help manage portfolios based on objective data.
Institutional investors, such as pension funds, insurance companies and hedge funds, often have more sophisticated investment strategies. Because they manage large amounts of capital, these investors take a more complex look at the markets, using technical and fundamental analysis to determine the best investment decisions for their portfolio goals.
Behind the Scenes
of the Trade
Buying and selling stocks may seem like a short click away, but behind the scenes lies a sophisticated network of technology that ensures fair and orderly markets for all investors.
For example, Nasdaq owns and operates exchanges that use cutting-edge technology to match buy and sell orders in real-time, while Nasdaq Trade and Market Surveillance solutions monitor trading activities for potential market abuses.
Beyond the Nasdaq Stock Market, there are also 17 more Nasdaq-owned markets in North America and Europe, and over 130 global exchanges that use Nasdaq technology to run their markets.
Setting
the Price
By buying and selling securities, investors, traders and market participants contribute to the price setting process.
The Nasdaq Stock Exchange not only provides matching for trades, it also disseminates market data, such as price and quantity of the bids and offers in the orderbook. This continual process determines stock prices throughout the day.
In 2023, the Nasdaq Closing Cross executed, on average, 275 million shares, representing $17.5B traded each day.
Nearly 1/4 of all trades happens on the Nasdaq Stock market.
This dynamic environment fosters liquidity, transparency, and price stability to maintain trust in the markets. Ultimately, this data sets the prices for securities, the values for indexes and more.
Market Modernization
Shaping
Markets
Upholding market integrity, embracing technological advancements and prioritizing stakeholder interests are fundamental to maintaining vibrant and resilient markets that can serve as engines of economic growth and prosperity.
Global infrastructure organizations are powered by Nasdaq technology.
Global infrastructure organizations are powered by Nasdaq technology.
In a constantly changing financial and regulatory landscape, market operators face mounting challenges, like constantly evolving financial crime and cybersecurity threats, operational and regulatory risk, as well as market volatility. Leveraging technology to mitigate these risks and stay compliant is critical to staying competitive.
Scaling
Resilient Markets
Scaling markets is vital for fostering economic growth because it promotes innovation, widens access to capital and increases accessibility on a global scale.
As markets grow, market operators must strive to differentiate themselves and modernize operations, while simultaneously working to widen access to capital for new companies. Resilient underlying market infrastructure also attracts new investors to participate in the markets, allowing them to build wealth for a prosperous future.
As markets grow, market operators must strive to differentiate themselves and modernize operations, while simultaneously working to widen access to capital for new companies. Resilient underlying market infrastructure also attracts new investors to participate in the markets, allowing them to build wealth for a prosperous future.
Market operators can modernize by integrating new technologies like cloud adoption to increase efficiency, and artificial intelligence to aid market surveillance and risk management.
Safeguarding Capital
Protecting
Profits
Across every area of the financial system, threats to security are growing in scale and sophistication.
in flow of illicit funds globally
in fraud losses globally
in flow of illicit funds globally
in fraud losses globally
Banks are often a target of these criminal schemes as hubs of capital that flows constantly. But as threats increase, banks should leverage fraud detection and anti-money laundering solutions to ensure there is no malicious activity associated with their transactions.
The Human Impact
of Financial Crime
Financial crime takes a widespread human toll. Whether it is proceeds from drug trafficking, human trafficking schemes, or funding for terrorist organizations, criminals exploit the financial system for their illicit gains.
"Financial crime exploits the most vulnerable members of our society and underpins many of the world’s most destructive crimes.”
Adena Friedman
Nasdaq CEO & Chair
"Financial crime exploits the most vulnerable members of our society and underpins many of the world’s most destructive crimes.”
Adena Friedman
Nasdaq CEO & Chair
Financial institutions are on the front lines of stopping these criminals. Through innovative technologies like Nasdaq Verafin’s cloud-based platform, banks can leverage machine learning and big data to disrupt money laundering and fraud, enabling money to move with confidence.
banks trust Nasdaq to protect their reputation, decrease complexity and simplify operations.
banks trust Nasdaq to protect their reputation, decrease complexity and simplify operations.
Banking for
the Future
A healthy global financial system requires banks to be safe, secure and compliant. All banks face new and evolving cybersecurity risks, operational and regulatory risk, as well as the continued risk of exploitation by financial criminals.
To stay competitive and find growth opportunities, banks should have financial technology solutions that are designed to help them navigate these challenges and scale with their growth strategy.
By investing in financial technology that helps them stay secure and in compliance with regulations, they can reinvest in innovation to stay competitive in our dynamic global economy.
