Some more information on NASDAQ as OTC OTC, where traders arranged private deals over the telephone. Many stocks in the OTC market are served by the National Association of Securities Dealers Automatic Quotations (NASDAQ), which is an electronic quotation system that provides immediate price quotations. It was developed to link brokers and dealers in a computer network where price quotes could be displayed and revised. Dealers could use the network to display the bid price at which they are willing to purchase a security and the ask price at which they were willing to sell. Originally, NASDAQ was more of a price-quotation system than a trading system. While brokers could survey bid and ask prices across the network of dealers in search for the best trading opportunity, actual trades required direct negotiation (often over the phone) between he investors broker and the dealer in the security. However, NASDAQ has evolved into an electronic market. While dealers will post bid and ask prices over the network, the vast majority of trades are executed electronically without need of direct negotiation. The most significant difference between the New York Stock Exchange and NASDAQ is how buyers and sellers trade securities (to correct: not because whether stocks are listed or not). NYSE facilitates and operates like an auction market, while NASDAQ creates the market for trades via what’s known as a dealer. It does not mean that stock exchanges cannot run auction market type of ECNs, e.g. The London Stock Exchange’s quote driven market: SEAQ system (Stock Exchange Automated Quotation) is a dealer market. At the same time, The London Stock Exchange also has electronic order-book system called SETS (Stock-exchange Electronic Trading Service).