Which market is primarily associated with NASDAQ?

The NASDAQ is primarily associated with the over-the-counter market. This association arises from its structure and function as a platform where securities are traded directly between parties without a centralized exchange. Unlike traditional stock exchanges that facilitate the buying and selling of stocks in a physical location, NASDAQ operates as an electronic network. It allows for a wide array of securities to be traded, which includes stocks of many technology companies and growth firms.

In the context of financial markets, the over-the-counter market is significant because it encompasses trades that occur through broker-dealers, as seen on the NASDAQ platform. This market enables greater flexibility and a more decentralized trading approach, which complements the types of companies that typically list on NASDAQ.

While the primary market refers to the initial offering of securities directly from issuers to investors, and the secondary market involves the trading of these securities among investors after the initial offering, these concepts do not accurately capture the essence of NASDAQ's operations. Similarly, the futures market deals with contracts for future delivery of commodities or financial instruments, which is not the focus of what NASDAQ represents. Thus, understanding NASDAQ's role as an over-the-counter market is crucial for grasping how a significant portion of securities trading occurs in modern finance.