<p>NASDAQ, or the National Association of Securities Dealers Automated Quotations, is a leading U.S. stock exchange and index, known for its focus on technology and growth companies. It is the second-largest stock exchange in the world by market capitalization, behind the New York Stock Exchange (NYSE).</p>

<h2>How It Works</h2>
<p>The NASDAQ is an electronic exchange, meaning all trading is conducted electronically rather than on a trading floor. It lists over 3,000 companies, with a significant portion being technology and growth-oriented businesses. The NASDAQ Composite is the primary index for the exchange, which tracks over 3,000 stocks across various sectors. Other notable indices include the NASDAQ-100, which tracks the 100 largest non-financial companies on the NASDAQ, and the NASDAQ Biotechnology Index, which tracks companies in the biotechnology sector.</p>

<h2>Why It Matters</h2>
<p>The NASDAQ plays a crucial role in the global financial markets due to several reasons:</p>
<ul>
  <li><strong>Tech and Growth Exposure:</strong> As a tech-heavy exchange, the NASDAQ provides investors with significant exposure to the technology sector, which has been a key driver of growth in the global economy.</li>
  <li><strong>Innovation:</strong> Many of the world's leading tech companies, such as Apple, Microsoft, and Amazon, are listed on the NASDAQ, providing investors with the opportunity to invest in innovation and growth.</li>
  <li><strong>Market Indicator:</strong> The NASDAQ indices serve as important market indicators, reflecting the performance of the U.S. and global technology sectors.</li>
</ul>