What stock exchange in the United States conducts all transactions through a computerized network?

The NASDAQ, which stands for the National Association of Securities Dealers Automated Quotations, is notable for being the first electronic stock exchange in the United States. Unlike traditional exchanges that operate on a physical trading floor, the NASDAQ relies entirely on a computerized network to facilitate trading. This network enables buyers and sellers to execute trades through a fully electronic system, making the process faster and often more efficient than open outcry systems.

This electronic format allows for a wide range of securities to be traded and provides real-time price quoting, which can be advantageous for traders looking for quick execution. The structure and technology of NASDAQ have also played a significant role in its popularity, especially among technology and growth-oriented companies, which are often found on this exchange.

In contrast, the New York Stock Exchange (NYSE) operates a combination of electronic trading systems and a physical trading floor, while the AMEX (now known as NYSE American) has also moved towards electronic trading but historically relied on a floor-based system. OTC Markets represent an entirely different venue, dealing primarily with stocks that are not listed on formal exchanges and also using electronic systems, but they are not categorized as a stock exchange in the same manner as NASDAQ.