Nasdaq Inc. (NDAQ) shares rose on Tuesday as the financial-exchange company said it would spin out its market for shares of private companies.
That market, called Nasdaq Private Market, is where investors can buy stock in companies that aren’t yet public.
Only accredited investors may put their money down on this exchange. The Wall Street Journal says that includes people whose net worth excluding their homes exceeds $1 million or have annual incomes above $200,000.
Nasdaq recently traded at $181.93, up 2.7%, and has gained 28% in the past six months amid hefty trading volume in financial markets. On Tuesday it touched a record $182.72.
Nasdaq said it would continue to be Nasdaq Private Market’s largest shareholder, Dow Jones reports.
In May, Morningstar analyst Michael Miller put Nasdaq Inc.’s fair value at $134.
“Nasdaq has a narrow economic moat that we think will allow it to continue to earn returns on invested capital above its cost of capital,” he wrote.
“While Nasdaq remains a leading firm among equity and options exchanges, the company’s moat is defended primarily by valuable intangible assets.”
The company “has created substantial recurring revenue sources through the value of its data offerings as well as the strength of the Nasdaq brand name,” Miller said.
The Financial Times reported that Nasdaq bought a business called eSpeed in 2013 from BGC Partners (BGCP) to enter electronic trading of U.S. Treasury securities.