National Market System (NMS)

The National Market System (NMS) is a set of rules and regulations in the U.S. designed to ensure transparent, fair, and efficient trading of securities across different exchanges. It allows investors to buy and sell stocks seamlessly regardless of where the stock is listed, promoting competition among markets. The NMS facilitates better price discovery, minimizes disparities in stock prices, and provides access to real-time information, helping investors make informed decisions. Essentially, it creates a unified, integrated environment for stock trading nationwide, ensuring that market activity is fair and accessible.