HOMEAboutGlobalizationFinancial ProductsMarket CharacteristicsListingsMarket ParticipantsMarket PerformanceTimeline2NASDAQ LISTS MORECOMPANIES THAN ANYOTHER U.S. EQUITIESMARKET.Since its debut in 1971 as the world’s first electronic stock market, TheNASDAQ Stock Market‚ has been at the forefront of innovation, usingtechnology to bring millions of investors together with the world’s leadingcompanies. Today, NASDAQ‚ (OTCBB: NDAQ) is the world’s largest electronic stock mar-ket, listing approximately 3,600 of the world’s most innovative companies. It ishome to category-defining companies that are leaders across all areas of busi-ness including technology, retail, communications, financial services, media andbiotechnology industries. NASDAQ’s competitive market structure, combinedwith an extensive portfolio of products and services, attracts today’s largest andfastest growing companies. In fact, more companies now list on NASDAQ thanall other major U.S. stock markets. NASDAQ is the fastest growing major stockmarket in the U.S.— and home to over half of the companies traded on the pri-mary U.S. markets. NASDAQ trades more shares per day than any other U.S. equities market. OnNASDAQ, trades are executed through a sophisticated computer and telecom-munications network – a system which transmits timely, critical investment infor-mation to more than 1.3 million users in 83 countries. NASDAQ is also amongthe world’s best-regulated stock markets, employing sophisticated surveillancesystems and regulatory specialists to protect investors and provide a fair andcompetitive trading environment. About NASDAQ3About NASDAQOffering growth and liquidity and fostering innovative technologies, NASDAQcontinues to build the most efficient trading environment worldwide — to thebenefit of all market participants and investors. For more information on The NASDAQ Stock Market, visit www.NASDAQ.com.4GLOBALIZATION IS ANIMPORTANT ASPECT OFNASDAQ'S VISION. BYCREATING INTERNA-TIONAL ALLIANCES,NASDAQ IS LEAVINGITS ELECTRONIC FOOT-PRINTS AROUNDTHE WORLD.GlobalizationNASDAQ is building the links to all the world’s investors and fast becom-ing the world’s first global exchange. Our electronic market structure andbrand recognition provide the foundation for worldwide expansion.Unlike a floor-based exchange, NASDAQ’s open architecture is not limit-ed to geography. Market makers and trading systems can connect intoNASDAQ from anywhere in the world, which has played a critical role indemocratizing equity markets in the U.S. Since the majority of global capital markets' activity is in Europe andNorth America, we are focusing our initial globalization efforts in theseregions, while creating important ties in Asia and elsewhere. Our approachis to help develop and consolidate vibrant local markets in these regionsthat we can eventually meld into a globally networked marketplace,accessible 24 hours a day from anywhere in the world. Our long-term goal isto help people around the world gain greater access to equity investing bybuilding a highly efficient, globally integrated network.5NASDAQ IS MAKINGGREAT STRIDES INBECOMING THE GLOB-AL MARKETPLACE OFTHE FUTURE.GlobalizationAsiaDuring 2001, NASDAQ opened new representative offices in Bangaloreand Shanghai—designed for educational purposes and to enhance our servic-es for NASDAQ-listed companies in India and mainland China.6CANADIAN INVESTORSHAVE ACCESS TO CANADIAN COMPANIESLISTED ON NASDAQ THROUGH LOCALCANADIAN BROKERS.Canada NASDAQ Canada, launched in November 2000, provides Canadianinvestors direct access to U.S. securities and offers listed companies theability to raise capital more efficiently. Modeled after The NASDAQ StockMarket, NASDAQ Canada represents an alternative market structure to the tra-ditional Canadian equity exchanges and, therefore, will help to facilitate capitalformation in Canada, contributing to job creation and economic growth. GlobalizationFinancial Products7NASDAQ-100 Index and QQQOVER THE PAST TENYEARS, THE NASDAQ-100 INDEX HASOUTPERFORMED ALLOTHER INDEXES,INCLUDING THE S&P500 AND THE DOW.Designed to track the performance of companies included in the NAS-DAQ-100 Index before fees and expenses, QQQ consists of NASDAQ’s 100largest non-financial companies. For many of these companies, QQQ is oneof the top institutional shareholders representing thousands of long-terminvestors. For investors, QQQ represents a ready-made portfolio of ownershipin today’s industry-defining companies—offering the advantages of instantdiversification and trading as a highly liquid security.First introduced on March 10, 1999, The NASDAQ-100 Index Tracking Stock(QQQ) has attracted more than $17 billion in total assets—with more than696,000,000 shares outstanding by the end of 2002. In 2002, QQQ was themost actively traded stock in the U.S. in terms of average daily trading volume—nearly 89 million shares per day. Since we introduced QQQ to the U.S. in 1999, the impact of its increasing pop-ularity has been felt worldwide. We have now licensed 160 other global invest-ment products and instruments—including options, futures and traditional mutu-al funds—that have been created based on the performance of the NASDAQ-100 Index. In addition, a NASDAQ-100 European ETF was launched inDecember 2002. And recent securities and tax law changes in Japan will nowallow us to introduce QQQ into the Japanese market.For more information visit www.NASDAQ-100.comFinancial Products8NASDAQ-100 Index and QQQFor more complete information about NASDAQ-100 Index Tracking StockSM,including charges, expenses, potential risks and a fund performance, obtain aprospectus from your broker, or call 888.627.3837 or visit our Web site atwww.nasdaq-100.com. Read it carefully before you invest. The NASDAQ-100Index Tracking Stock is subject to risks similar to those of stocks, includingthose regarding short selling and margin account maintenance. An investor can-not invest directly in the Index. Index performance does not reflect the fees andexpenses associated with investing. While there is no assurance that the per-formance of the NASDAQ-100 Index can be fully matched, the NASDAQ-100Index Tracking Stock is designed to provide investment results that generallycorrespond to the performance of the NASDAQ-100 Index before fees andexpenses. Past performance is not indicative of future performance.The sponsor of the NASDAQ-100 TrustSM, a unit investment