The NASDAQ, which is short for National Association of Securities Dealers Automated Quotation System, was the worlds first completely electronic stock market. Unlike the New York Stock Exchange where stocks are traded on the floor of the exchange, stocks which are listed on the NASDAQ trade via electronic communications networks. In general it is less expensive and the barriers are lower to list a stock on the NASDAQ than it is on the New York Stock Exchange, so many smaller growth companies tend prefer to list their stocks on the NASDAQ.