Asked by: Btissam Baldapersonal finance mutual funds
What is the Nasdaq and what does it measure?
Last Updated: 28th January, 2020
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Furthermore, what does the Nasdaq consist of?
The NASDAQ index consists ofapproximately3,300 companies. The majority are concentrated intechnology,biotechnology, financial services, media,communications, retailand transportation. Stock trades on theNASDAQ tend to besmaller and more volatile. The NASDAQconsists of morestart-up companies than the NYSE.
Furthermore, why is the Nasdaq important? NASDAQ has a very important role to playinglobal as well as local economy. In the U.S. alone, it is thesinglemost trusted ground for any company to list its shares on.All majorglobal conglomerates have their stocks listedonNASDAQ.
Similarly one may ask, what does the Nasdaq number mean?
The Nasdaq number you see is actuallytheNasdaq Composite Index, a measure which represents allthestocks being traded on the Nasdaq.
How is the Nasdaq calculated?
The NASDAQ Composite Index is amarketcapitalization-weighted index. The value of the Index equalstheaggregate value of the Index share weights, also known as theIndexShares, of each of the Index Securities multiplied by eachsuchsecurity's Last Sale Price1, and divided by the divisor oftheIndex.