Investing

NASDAQ

July 10, 2023

What is NASDAQ?

The NASDAQ refers to the Nasdaq Composite, an index listed on the NASDAQ stock exchange, where you can buy and sell stocks or shares of publicly traded companies. The NASDAQ is distinct because of its heavy weight towards the technology sector, featuring giants like Apple, Facebook, Tesla, and Google. Technology stocks account for over 50% of the Nasdaq Composite’s index weight. These types of stocks tend to be more volatile than stocks in other index funds that may be more diversified.

How is the NASDAQ unique?

The NASDAQ is the first all-electronic and all-automatic exchange. The exchange’s creation in 1971 represented a new way for investors to trade. The NASDAQ has the highest volume of stock trades which makes it the most active stock exchange in the U.S. Because NASDAQ is all electronically traded, there are lower listing fees for companies and fewer requirements for qualification, making it appealing to companies.

What does NASDAQ stand for?

NASDAQ stands for National Association of Securities Dealers Automated Quotations. The NASDAQ Composite Index (IXIC) is the index fund that tracks the performance of all of the companies listed on the NASDAQ exchange.

How many companies are in the NASDAQ?

There are 3,300 company listings in the NASDAQ.

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