National Market System - NMS


DEFINITION of 'National Market System - NMS'

A system with two main functions:

1. To facilitate trading of OTC stocks whose size, profitability, and trading activity meet specific criteria.

2. To post prices for securities on the NYSE and other regional exchanges simultaneously, allowing investors to obtain the best price.

BREAKING DOWN 'National Market System - NMS'

The National Market System is sponsored by both the NASD and the Nasdaq. Compared to other OTC stocks, OTC stocks trading under the NMS system have a more comprehensive listing within newspapers.

  1. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context ...
  3. 19c3 Stock

    Any stock listed on an equity exchange after April 26, 1979. ...
  4. National Association Of Securities ...

    The NASD was a self-regulatory organization of the securities ...
  5. Regulation NMS

    National Market System (NMS) is a set of rules passed by the ...
  6. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
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