NASDAQ Composite definition
The NASDAQ Composite is an equity index that includes most stocks listed on the NASDAQ stock market.
Together with the DJIA (Dow Jones Industrial Average) and the SPX500 (Standard & Poor’s 500) indices, the NASDAQ Composite is one of the three most popular equity indices traded in the United States.
NASDAQ Composite Index explained
The NASDAQ Composite Index is a market capitalization-weighted index of the approximate 2500 equities listed on the NASDAQ stock exchange. The index contains companies in the information technology sector.
The NASDAQ 100 includes 100 of the largest non-financial companies, accounting for close to 90% of the NASDAQ Composite’s movements.
The NASDAQ (National Association of Securities Dealers Automated Quotations) is a stock exchange. However, unlike other stock exchanges, like the NYSE (New York Stock Exchange), there are no physical trading floors. Transactions on the NASDAQ take place directly between investors, seeking to buy or sell, and market makers through electronic communication networks.