Nasdaq Japan Markets Pre-discussion Ken Peffers UNLV September 2003

Nasdaq Stock Market founded 1960s evolved to become highly efcient electronic platform that unites more than 500 markets in which buyers and sellers exch information and transact business At end of 2000, averate of 1.7 bil trans per day.

Nasdaq provides Shared technology and business infrastructure (communications and computing systems, facilities and equipment) for member companies Operating and process model (to support business transactions) Management and information model (to enable coordination and control)

Decision making for the firm When business conditions are stable DM resembles chess game Players plan series of moves, anticipating countermoves After each move players analyze situation and plan new moves

During periods of innovation or instability Players moves may not reflect rational thinking Opponents may know things you don’t know Must return to fundamental analysis of business structure Define, execute, and evolve strategy

Nasdaq Market Players Issuers IPOs, established firms Build new business Prepare for IPO Apply for listing approval Gain approval and list Offer secondary offerings

Issuer Support Service Providers Venture capital firms Lawyers and accountands Investment bankers PR firms Consultants Provide funding, advice and services to entrepreneurs and execs Assist with development of capabilities needed to define and execute strategy

Market Makers Share market info about avail and price of shares and level of supply and demand for each security Stimulate demand and supply Accept and post buy and sell orders Match best bid and offer Execute trades

Regulators SEC, NASD Develop regulations to protect investors and maintain the integrity of the securities markets Monitor and enforce regulations Define disclosure standards for public companies

Clearance and Settlement Agents Banks, National Securities Clearing Corporation, etc. Book trade Notify buyers, sellers and market makers Notify banks Settle accounts Provide insurance

Investor Support Service Proviers Market research firms, financial analysts and advisors, Portfolio and fund managers Assist investors with the def of investment goals

Investors Ind and inst. Access info and advice and develop expertise Make decisions concerning the dev and mgmt of investment portfolios

Nasdaq Japan Markets Postscript Ken Peffers UNLV September 2003