4. To compare the functions of dealers and brokers.

A broker is a person who executes the trade on behalf of others, whereas a dealer is a person who trades business on his own behalf.

A dealer is a person who will buy and sell securities on his account. On the other hand, a broker is one who will buy and sell securities for his clients.

Dealers have all the rights and freedom regarding the buying and selling of securities

Brokers do not have the right of freedom of buying and selling the securities. This is possibly because of the fact they don’t have sufficient experience.

A dealer has a lot of experience in dealing with securities. A broker has only a little experience in the field compared to dealers. It has also been seen that brokers become dealers once they get experience.

A broker is normally paid a commission for transacting the business.

A dealer is not paid a commission, and he or she is a primary principal. He earns the difference between the purchase price and the selling price of the asset.

It’s no matter for broker if you win or lose. Broker’s earnings doesn’t depend on it. Broker only fulfills your application, taking them on the stock market. He will get the commission in any case (your winning or losing), as a percentage of the amount of transactions made by you. The situation is quite different with the dealer. The dealer is your counterpart to each transaction. All transactions are made between you and the dealer. So your loss is dealer’s profit. Your winning is dealer’s loss.

Dealer determines the market for participants with which he plays.

The dealer is entitled to put quotes on his own. As well as different currency exchange set different rates. Brokers don’t put quotes, they just transmit you application of the exchange.

The difference between them is their method of operation. As a matter of fact both of them should be aware of the changes that take place in the stock market on a daily basis.

Clients are the primary concern for a broker whereas trade is the primary concern for a dealer.

5. What are the main functions of nasdaq?

The NASDAQ is one of the exchanges that account for the trading of a major portion of equities in North America and the world. Equities are exchanged between buyers and sellers in NASDAQ as in the case of the other stock markets. Knowing how the NASDAQ functions will help an investor understand the function of a stock exchange and the mechanics behind the buying and selling of stocks.

The NASDAQ is located not on a physical trading floor but on a telecommunications network. Trading takes place directly between investors and their buyers or sellers, who are the market makers, through an elaborate system of companies electronically connected to one another.

The NASDAQ is a dealer's market, wherein market participants are not buying from and selling to one another but to and from a dealer, which, in the case of the NASDAQ, is a market maker.

NASDAQ’s main function is to facilitate trading, not participate in it, so it does not hold inventories of stock; however, various market participants trading on NASDAQ may hold inventories of stock as part of their normal business operations.

NASDAQ functions: NASDAQ facilitates trading in stocks, derivatives, debt, commodities, structured products and exchange-traded funds, provides free stock quotes and facilitates access to capital by listing company securities.

• Each stock market requires people who are at the ``intersection'' where buyers and sellers ``meet'', or place their orders. On the NASDAQ, these people are known as the market makers, who, we already mentioned, transact with buyers and sellers to keep the flow of trading going.The market maker ``creates a market'' for a security and ensures smooth and orderly markets for clients.

• The NASDAQ is typically known as a high-tech market, attracting many of the firms dealing with the Internet or electronics. Accordingly, the stocks on this exchange are considered to be more volatile and growth oriented.