The Nasdaq is the second largest stock exchange in the world by stock value and the world’s first electronic stock trading platform. To better understand what the Nasdaq and nasdaq composite and nasdaq 100 index are, check out our article below.
Table of Contents:
What is the Nasdaq?
Nasdaq stands for National Association of Securities Dealers Automated Quotations, referred to as the American stock exchange. Nasdaq was founded in 1971 by the National Association of Securities Traders.
The Nasdaq was established to help stock investors through an automated trading system that can buy and sell stocks in the most transparent and fast way.
Nasdaq Index Types
Like any exchange, the Nasdaq uses a collection of stocks to provide a snapshot of the market’s performance. The NYSE manages the Dow Jones Industrial Average (DJIA) as its main index and the NASDAQ uses the Nasdaq Composite and Nasdaq 100.
- Nasdaq Composite
The Nasdaq Composite measures the change in more than 3,000 stocks traded on the Nasdaq. The Nasdaq Composite is often referred to as “Nasdaq” and is an index commonly cited by journalists and financial reporters.
The types of stocks in the index include:
- American Certificate of Trust – ADR
- Ordinary shares
- The interest rate on the contribution of limited liability capital
- Ordinary shares
- Real Estate Mutual Funds (REITs)
- Shares of interest to SBI holders)
- Stock tracking
The index includes all shares listed on the Nasdaq, but does not include derivatives, preferred shares, funds, exchange-traded funds (ETFs) or debt securities.
- Nasdaq 100
The Nasdaq 100 measures the 100 largest non-financial corporations by market value listed on the Nasdaq stock exchange. These companies operate in various industries, although the largest are often related to technology. Every year, companies can be added or removed from the Nasdaq 100, depending on their market value.
- Nasdaq Biotechnology Index and Nasdaq Financial Index
In addition to the two main indices mentioned above, the Nasdaq has two other sub-indices, including the Nasdaq Biotechnology Index (Nasdaq Biotechnology Index) and the Nasdaq Financial Index (Nasdaq Financial 100).
While the Nasdaq Biotechnology Index is a stock market index consisting of the stocks of Nasdaq-listed companies in the biotechnology or pharmaceutical sectors, the Nasdaq Financial Index is an index of financial companies, including banks and insurance companies, brokerage firms, and mortgage companies.
Difference between Nasdaq Composite Index and Nasdaq 100
Nasdaq Composite |
Nasdaq 100 |
|
| Release time | (1971) | 1985 |
| size | More than 3,000 companies are listed on the Nasdaq stock exchange | The 100 largest companies by market value are traded on the Nasdaq exchange |
| Evaluation criteria | It is a company listed exclusively on the Nasdaq.
This is one of the following types of titles: American Certificate of Trust – ADR; Interest rate of the limited liability capital injection; Ordinary shares Real Estate Investment Funds (REITs); Shares of interest to holders (SBI); Stock monitoring. |
It is a company listed exclusively on the Nasdaq.
Publicly offered on the US market for three months; Have an average minimum daily trading volume of 200,000 shares; Dissemination of quarterly and annual reports; The company is not in danger of bankruptcy or dissolution. |
| element | Engineering at 46.40%,
Consumer services at 20.16%, Healthcare at 10.86%, Finance at 8.59%, Industrial at 6.32%, Consumables at 5.49%, Oil at 0.71%, Telecommunications at 0.70%, 0.47% base material, Other utilities at 0.30%. |
Technology accounts for 54% of the weight of the index,
Consumer services are represented by companies such as restaurant chains, retailers and travel services. Healthcare, industry and telecommunications. |
| Some large companies are included in the index | 1347 Insurance Property Holdings, Inc.
21 VIA NET GROUP, 2U, 51 WORK, A-Mark Precious Metals, Aaron ABIOMED, AC Immune Ltd, AC MOORE ARTS & CRAFTS, Acacia Communications Inc |
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Microsoft, Amazon Facebook, alphabet Intel Corp, Comcast Corp, Cisco Systems, Pepsico adobe |
Conclusion
Above, we have just given you some knowledge about what the Nasdaq and the Nasdaq Composite and Nasdaq 100 indices are and comparing the differences between these two indices. I hope this sharing is useful for you who are active in the field of securities.
