What does NASDAQ stand for?

The abbreviation NASDAQ stands for the National Association of Securities Dealers Automated Quotations. This reflects its role as a computerized system that facilitates the buying and selling of stocks in the U.S. financial markets. Originally established in 1971, NASDAQ was the world's first electronic stock market, enabling trades to occur automatically, which increased the efficiency and speed of transactions. The name signifies its foundations in the association of securities dealers, which indicates a focus on the securities industry and its ability to provide automated quotations for the prices of stocks.

Understanding the components of this term helps to grasp the significance of NASDAQ in the financial landscape, as it was specifically designed to enhance the trading experience for both brokers and investors through an automated system of trade execution and price dissemination. The other options do not accurately represent the full purpose or the history of the NASDAQ, which is primarily centered on providing a platform for securities trading rather than focusing on depreciation, questions, or defaults.