In this episode of Motley Fool Answers, host Alison Southwick and Motley Fool personal finance expert Robert Brokamp are joined by Morgan Housel, author of The Psychology of Money, to hear his takeaways from the GameStop (NYSE:GME) fracas, Jeff Bezos’ stepping down as Amazon (NASDAQ:AMZN) CEO, and the seemingly never-ending party in the stock market.
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This video was recorded on February 9, 2021.
Alison Southwick: This is Motley Fool Answers, I’m Alison Southwick joined as always by Robert “Super Bro Champion” Brokamp. [laughs] In this week’s episode, Morgan Housel is back to talk about how you should feel about GameStop, Bezos stepping down and what about that stock market? It just keeps going up. If the name isn’t familiar to our newer listeners, trust me, you’ll love him as much as we do. All that and more on this week’s episode of Motley Fool Answers.
So, Bro, what’s up?
Robert Brokamp: Well Alison, I got three things for you, No. 1, happy birthday Nasdaq. Yesterday marked the 50th birthday of the National Association of Securities Dealers Automated Quotations, now known officially as the Nasdaq. Up until February 8th, 1971 most trading was done in person on trading floors. For stocks that weren’t listed on the exchanges, trades were done between dealers in the system that came to be known as over-the-counter. Prices for these OTC stocks were published and distributed on reddish pieces of paper, so they became known as the pink sheets. Pink sheets is still a term used for these OTC stocks although it’s now all electronic. Even though these prices came on the pink sheets, in practice, the brokers basically had to place phone calls to other brokers around the country to determine the best prices. Very time-consuming, very cumbersome, not much transparency, but then came the Nasdaq, which was the world’s first automated trading system. Originally, it was actually just an electronic bulletin board shared by 500 market makers from across the country, displaying the prices of the stocks that traded over-the-counter.
Gordon Macklin, the president of the NASD back then said this in a 1999 article in Traders Magazine,”It was an absolute miracle to be able to push a button and pull up on the screen everyone from all over the country and all of their current bids and offers. It was state-of-the-art, just a huge leap forward, coming from over-the-counter to over the computer, even in its most primitive stages was a thrilling lifetime experience.” In 1975, Nasdaq developed a system by which trades could actually be executed electronically and then 1998 it became the first U.S. exchange to trade online. The value of the index at launch…
Go to the news source: Morgan Housel Talks GameStop, Bezos, and More