National Market System

National Market System
National Market System - National Market System is the over-the-counter-trading. The structure of trading OTC stocks under the sponsorship of the NASD.

National Market System - NMS
A system with two main functions:
1. To facilitate trading of OTC stocks whose size, profitability, and trading activity meet specific criteria.

National Market System: The most actively traded stocks on the NASDAQ System. Commonly referred to as the NMS.

National Market System (NMS)
Refers to over-the-counter trading. System of trading OTC stocks under the sponsorship of the NASD. Must meet certain criteria for size, profitability and trading activity.

Securities Acts Amendments of 1975 A Congressional law, calling for the establishment of a National Market System,... securities analyst An employee of a bank, brokerage, advisor, or mutual fund who utilizes technical...

considered the most significant securities legislation since the 1934 Act, this act ended fixed commission rates, initiated action toward development of a national market system, ...

SEC rules aimed at improving public disclosure of order execution and routing practices require all market centers that trade national market system securities to make monthly electronic reports.

NMS is an acronym for National Market System, and refers to stocks trading on NASDAQ. NMS companies are required to meet set criteria for size, profitability and trading volume to be listed.

Such a system consolidates limit orders in a central location and bridges the gap in establishing a national market system.

Definition
CAES
Allows automatic execution of listed securities and National Market System stocks without limiting the size of the trade. Does not accept all NASDAQ stocks. See also: SOES.
RELATED TERMS ...

NASDAQ Composite Index - Unmanaged index of the National Market system which includes over 5,000 stocks traded only over-the-counter and not on an exchange.

Naive diversification
National best bid and offer
National Futures Association
National market system plan
No free lunch with vanishing risk
Noise trader
Noisy market hypothesis ...

Securities Acts Amendments of 1975
Legislation to encourage the establishment of a national market system together with a system for nationwide clearing and settlement of securities transactions.

See also: Market, Stock, Trading, Order, Exchange