rded in a central computer file that may be viewed by all system subscribers (Sharpe, 1993, p. 55). As each bid or ask price is entered into NASDAQ through Level III activity, that price replaces all earlier prices entered by the securities dealers for the security involved. Actual trades are consummated through direct negotiation between securities dealers as opposed to automatic execution through the NASDAQ system.
To be listed by NASDAQ, a security must be held by two market makers registered with the NASD (Sharpe, 1993, p. 55). Additionally, criteria related to the minimum number of shares publicly held, capital requirements, and total asset requirements must be met. Current NASDAQ requirements are a minimum of $4 million in total assets and a minimum market value of $1 million in publicly held shares (Stevens, 1992, pp. 62 63).
NASDAQ has grown to become the number two stock trader in the United States (Morgenson, 1993, p. 74). The lead of the New York Stock Exchange (NYSE) over NASDAQ still exists, but NASDAQ has drawn nearly even with the NYSE in terns of shares traded, and NASDAQ is nearing parity with the NYSE in terms of total dollar volume of activity. In the 1990s, NASD
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