National Market System

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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. More comprehensive information is available for NMS stocks than for non-NMS stocks traded OTC (high, low, and last-sale prices, cumulative volume figures, and bid and ask quotations throughout the day). This is due to the fact that market makers must report the actual price and number of shares in each transaction within 90 seconds verses nonreal-time reporting for non-NMS stocks (thus, last sales prices and minute-to-minute volume updates are not possible).

National Market System

A trading system listing securities that trade in both New York and on regional exchanges. This allows investors to find the best price available for securities. The NMS also facilitates trading of certain over-the-counter stocks. It is sponsored and managed by NASDAQ and FINRA. See also: 19c-3 stock.

national market system (NMS)

1. A centralized system for reporting transactions and quotations from all qualified market makers. A national market system has been encouraged by the SEC as a trading system that would increase competition among exchanges and market makers, thus providing investors with more liquidity and better prices. Essentially, a national market system is envisioned as a single large market in which market makers are linked by telecommunications with information being freely available. Customer orders would be automatically filled at the best available prices.
2. See Nasdaq.

National Market System (NMS).

The National Market System (NMS) links all the major stock markets in the United States and was developed to foster competition among them.

Federal rules require these trading centers to ensure that transactions are executed at prices at least as good as protected quotations displayed at another center. A protected quotation is one that's immediately and automatically accessible.

References in periodicals archive ?
The Company's stock is traded on the NASDAQ National Market System under the symbol VERD.
We believe that the excellent market visibility and broader sponsorship that listing on the National Market System provides will be extremely beneficial for the Company and for shareholders over time.
TJ Systems' entry onto the Nasdaq National Market System is a significant credential in that it provides brokers and investors with improved visibility, enhances liquidity and increases competition among over 435 active market makers, all of which contributes to maximum shareholder value," said Michael F.
said, "We are very pleased to be able to begin 2005 with a listing on NASDAQ's National Market System.
Marten's common stock is traded on the Nasdaq National Market System under the symbol MRTN.
The common stock of ESB is traded on the Nasdaq Stock Market, National Market System under the symbol "ESBF.
Nasdaq: INTR) announced today that the National Association of Securities Dealers approved Interscience's application for listing of its common stock and warrants on the National Market System, effective with the opening of the market on Thursday, June 16, 1994.
AMEX:INV), the parent company of American Mortgage Network (AmNet), a wholesale mortgage bank serving mortgage brokers nationwide, today announced the move of its common stock listing to the NASDAQ National Market System from the American Stock Exchange (AMEX).
The savings bank's preferred stock is traded on the Nasdaq National Market System under the symbol CFBKP.
Accordingly, the Company now meets this requirement for continued listing on the NASDAQ National Market System.
Access National Corporation announced today it has filed an application to list its securities for trading on the NASDAQ National Market system.
Interspec stock is traded on the NASDAQ National Market System under the symbol ISPC.

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