What type of market is NASDAQ classified as?

NASDAQ is classified as an electronic method of communication that provides quotes on certain over-the-counter (OTC) securities. This classification reflects NASDAQ's function as a widespread electronic marketplace where buyers and sellers can trade securities electronically rather than through a traditional physical trading floor.

This method of operation allows for the instantaneous dissemination of quotes and transaction information, which is fundamental to the way NASDAQ facilitates trading. Unlike live auction markets, where buyers and sellers gather at a physical location to negotiate prices, NASDAQ operates through a network of computers that efficiently match and execute trades. This electronic framework contributes to greater speed and transparency in transactions, as it enables traders to receive up-to-the-moment price quotes and execute trades with minimal delay.

In the context of OTC securities, NASDAQ plays a crucial role by providing a structured environment for trading these often less liquid assets, connecting market participants in a way that enhances accessibility and the overall efficiency of the market.