Skip the QQQQ’s. Buy Nasdaq

Yes you heard it right. Not too many people know that Nasdaq (NDAQ) is a publicly traded company. The more commonly known QQQQ is an ETF that represents the 100 largest Nasdaq stocks, but buying a piece of the exchange will be more profitable for the following reasons:

 

1) Electronic trading is gathering more steam now that the New York Stock exchange is married to Archipeligo (AX). Gone are the days where loud noise and tossed paper ruled the exchanges. Electronic trade volumes have been rising steadily and there is none better than the Nas.

 

2) The sector has been red hot. Chicago Mercantile Exchange (CME) has doubled in the last year. Others like Archipeligo have almost quadrupled. Additionally, exchanges are currently in consolidation and globalization mode. Most recently, Nasdaq made a big for London Stock Exchange, Australian Stock Exchange for Sydney Futures Exchange and Deutsche Börse AG and Euronext NV entered merger talks.

 

3) Nasdaq announced a great quarter recently. 

 

4) More money is expected to flow into the markets this year with money coming out of housing. This will help all the exchanges, not just Nasdaq. 

 

5) Technically, this is great time to buy. The stock has formed a 4 month long base and has shown great resilience amidst the ups and downs this year.

 

– Faisal Laljee