This excerpt taken from the NDAQ 8-K filed Nov 20, 2006.
3. Information on NASDAQ and NAL
The NASDAQ Group is a leading provider of securities trading, listing and information products and services. NASDAQ manages, operates and provides its products and services in two business segments: the Issuer Services segment and the Market Services segment.
NASDAQs revenue sources from these segments are diverse. The Issuer Services segment includes revenues from listing fees, client services and financial products. The Market Services segment includes revenues from transaction services and from market data products and services. NASDAQs core business functions are:
NASDAQ is the holding company of The Nasdaq Stock Market LLC, which commenced operations as a US national securities exchange for NASDAQ-listed securities on 1 August 2006. The Nasdaq Stock Market is the largest electronic equity securities market in the United States, both in terms of number of listed companies and traded share volume. As of 30 September 2006, The Nasdaq Stock Market had 3,206 listed companies with a combined market capitalisation of over $4.1 trillion. NASDAQ also operates The Nasdaq Market Center, which provides The Nasdaq Stock Market participants with the ability to access, process, display and integrate orders and quotes in The Nasdaq Stock Market and other national stock exchanges in the US. Transactions involving 383.1 billion equity securities were executed on or reported to NASDAQs systems in the first nine months of 2006.
Based on the Closing Price of NASDAQ Shares on The Nasdaq Stock Market on 17 November 2006, NASDAQs market capitalisation was approximately $5.3 billion.
For the 52 weeks to 31 December 2005, NASDAQ reported gross margin of $526.0 million (2004: $484.6 million) and a profit from continuing operations before tax of $106.3 million (2004: $2.6 million). For the nine months to 30 September 2006, NASDAQ reported gross margin of $504.3 million and a profit before tax of $107.6 million. As at 30 September 2006, NASDAQ had net cash of $254.2 million which includes NASDAQs investment in LSE at fair market value of $1.3 billion.
NAL is a company incorporated in England on 24 March 2006 at the direction of NASDAQ for the purpose of acquiring LSE Shares. Since its incorporation, NAL has not been engaged in any activities save in connection with the acquisition and holding of LSE Shares and the financing and the making of the Final Offers. NAL is a wholly owned subsidiary of NASDAQ. The current directors of NAL are Adena Friedman, Edward Knight and David Warren.