Day16.Financial term|What is the Nasdaq Composite Index

Tiger_Academy
2023-04-23

The Nasdaq Composite Index is a stock index that reflects the changes in the NASDAQ stock market.

Nasdaq-listed companies cover all new technology industries, including software and computers, telecommunications, biotechnology, retail, and wholesale trading. It mainly consists of hundreds of the fastest-growing advanced technology, telecommunications, and biological companies in the United States, including Microsoft, Intel, Apple, and Meta, these household high-tech companies, thus becoming the synonym of the "new economy" in the United States.

The world's most famous company, Microsoft, is listed on NASDAQ to achieve success.

In the way of compilation, the Nasdaq index can reflect the trend of American high-tech stocks better because it adopts the way of "market value weighting" and has a quarterly adjustment system. If you're interested in technology companies in the US and want to see the overall performance of technology companies listed in the US, you can look at the Nasdaq Composite Index. (Tiger trade app - Quotes)

Nasdaq Composite Index, Dow Jones Industrial Average, and Standard & Poor's Index are known as the three major indexes of American stocks. Among them, the Nasdaq has a stronger comprehensive, it contains more than 3000 companies, more than any other single stock market, and is one of the most influential stock market indexes.

The tech sector makes up more than 50% of the Nasdaq. It was followed by consumer services, represented by restaurant chains, retailers, and travel services.

It's important to note that many people confuse the Nasdaq Composite with the NASDAQ 100.

The NASDAQ 100 index is much smaller than the Nasdaq Composite Index, which is a basket of the 100 largest and most actively traded American companies.

For more on the three major US stock indexes, Click here: US stock market investing for beginners

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • pcwSg
    2023-12-04
    pcwSg
    [Like] [Like] [Like] [Like] [Like]
  • amazinggrace
    2023-04-23
    amazinggrace
    Thabks for sharing
  • icycrystal
    2023-04-24
    icycrystal
    thanks for sharing
  • b1uesky
    2023-04-23
    b1uesky
    thk for sharing
  • Cklew
    2023-04-23
    Cklew
    thanks for sharing
  • CYKuan
    2023-04-23
    CYKuan
    thanks for sharing
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