NASDAQ

1] What did Nasdaq stand for?

National Association of Securities Dealers Automatic Quotation System

The Nasdaq is the second-largest stock exchange in the world. Nasdaq, which is an acronym
for National Association of Securities Dealers Automatic Quotation System, was
established in 1971. The US-based exchange is also the first-ever electronic stock market in
the world.
2] Which country owns Nasdaq?

the United States
Nasdaq, Inc. is an American multinational financial services corporation that owns and
operates three stock exchanges in the United States: the namesake Nasdaq stock exchange,
the Philadelphia Stock Exchange, and the Boston Stock Exchange, and seven European stock
exchanges: Nasdaq Copenhagen, Nasdaq Helsinki, Nasdaq .etc.
3] What is The NASDAQ composite?

The Nasdaq Composite is a stock market index that consists of the stocks that are listed on
the Nasdaq stock exchange. To be included in the index:
 A stock must be listed exclusively on the Nasdaq market.
 The stock must be a common stock of an individual company, so preferred stock,
exchange traded funds (ETFs), and other types of securities are excluded.
 American depositary receipts (ADRs), real estate investment trusts (REITs), and
shares of limited partnerships are eligible, however.
That's why there are so many stocks included in the Nasdaq Composite and why the number
of stocks in the index often changes. The index is designed to be representative of
the entire Nasdaq stock market, not just the largest companies.
The Nasdaq Composite is one of the most widely followed stock indexes in the U.S. and is
usually one of the three “headline” indexes that market commentators often cite -- along with
the Dow Jones Industrial Average and the S & P 500.
DIFFERENCE between Nasdaq & Dow Jones
1) NASDAQ comprises stock of companies in technological sector( growth stages)

2) NASDAQ 3000 Companies are participants
3) NASDAQ 100 is ;ore volatile and growth oriented companies make it more risky
4) Average of Market capitalisation i.e. price of outstanding shares is used to calculate
index of NASDAQ
5) DOW JONES comprises more about the stockprice and hence dependent on the
earnings.
6) DJIA consist of only 30 major companies traded on NYSE and NASDAQ
7) Risk involved in DJIA is low as it consist of small data -30 companies,
8) DJIA is calculated on the basis of price-weighted index
Because the Nasdaq has a high concentration of companies in the technology sector --

particularly of the younger, fast-growing variety -- the Nasdaq Composite Index is often
considered to be a good barometer of how well the tech market is performing.
4] How does the NASDAQ Composite Index work?

Like most major stock indexes, the Nasdaq Composite is weighted by the Market
capitalization of its underlying components. This means that when larger companies' stocks
move, it has a greater effect on the performance of the index than when the stocks of smaller
companies move.
For example, a Nasdaq-listed common stock with a $100 billion market cap would have
twice the influence on the index as a company with a $50 billion market cap, assuming an
equal movement in both stocks' prices.
The level of the Nasdaq Composite Index fluctuates continuously during stock market trading
hours.
5] How many companies are in the NASDAQ?

There are 3,626 Nasdaq-listed securities as of March 2022, but as mentioned previously, not
every type of security is included in the Nasdaq Composite index.
According to the fact sheet for the Fidelity Nasdaq Composite Index

Fund (NASDAQMUTFUND:FNCMX), a mutual fund that tracks the index, there were a
total of 3,417 different stocks issued by 3,365 companies in the index as of Dec. 31, 2021.
(Some companies have more than one class of stock.)
However, it’s important to know that because the index is weighted by market
capitalization, and because some of the largest companies in the world are Nasdaq-listed, the
index is rather top-heavy. In fact, the top 10 stocks in the Nasdaq Composite account for
about 47% of the index’s performance. With that in mind, here’s a look at the 20 largest
stocks in the Nasdaq Composite:
1. Apple
2. Microsoft
3. Amazon
4. Meta
5. Alphabet (C shares
6. Tesla
7. Alphabet (A shares)
8. NVIDIA
9. Paypal (NASDAQ:PYPL)
10. Intel (NASDAQ:INTC)
11. Comcast (NASDAQ:CMCSA)
12. Netflix (NASDAQ:NLFX)
13. Adobe (NASDAQ:ADBE)
14. Cisco Systems (NASDAQ:CSCO)
15. PepsiCo (NASDAQ:PEP)
16. Broadcom (NASDAQ:AVGO)
17. Texas Instruments (NASDAQ:TXN)
18. T-Mobile (NASDAQ:TMUS)
19. Costco (NASDAQ:COST)
20. Qualcomm (NASDAQ:QCOM)
6] NASDAQ 100:
There’s another Nasdaq-based index that is widely followed: the Nasdaq 100. This index,
which is also market-cap weighted, is often confused with the Nasdaq Composite, but there's
a big difference that's important to note.
Instead of including all of the common stocks listed on the Nasdaq exchange, the Nasdaq 100
only includes the stocks of the 100 largest nonfinancial companies listed. The 100 companies
in the Nasdaq 100 make up more than 90% of the weight of the Nasdaq Composite Index.
Just like with the Nasdaq Composite, there are mutual fund and ETF products that allow
investors to track the Nasdaq 100 Index in their portfolio. Most notable is the Invesco
QQQ (NASDAQ:QQQ) ETF, which proportionally invests in the 100 index components for
a low expense ratio
7] Who should invest in the NASDAQ Composite Index?
Investing in stock market indexes is a great idea if you don’t have the time or desire to
research and select individual stocks to invest in, or if you lack the knowledge necessary to
properly evaluate stocks.
In fact, billionaire investor Warren Buffett, who is widely considered to be the most

successful stock investor of all time, has said that index funds are the best investment choice
for the majority of Americans. If you have the time and desire to invest in individual stocks
properly, we encourage you to do so, but if you don’t, there’s nothing wrong with putting
your investment portfolio on autopilot with index funds.
With that in mind, the Nasdaq Composite Index offers lots of exposure to tech heavyweights
of today, such as Apple, Microsoft, and Amazon, while also giving investors some exposure
to the tech heavyweights of tomorrow, thanks to its inclusion of every Nasdaq-listed common
stock. As a result, the Nasdaq Composite Index could be a great investment choice if you
don’t yet feel comfortable choosing individual stocks or if you want broad exposure to the
technology sector.
TIs Amazon part of S&P 500?
Amazon is, of course, part of the S&P 500, which is an index of the 500 largest U.S.
companies by market cap
Tesla was added to the Nasdaq-100 Index, which tracks the biggest companies on the
Nasdaq, before the start of trading on Monday. It replaced Oracle, which joined the New
York Stock Exchange.
8] Functions of NASDAQ?
The Nasdaq is a stock market, which means that it provides a place for investors to buy and
sell stocks. It also provides a place for companies to list their stocks. When you buy or sell
shares of stock on the Nasdaq, your order is processed through an electronic system. This
system is called the Nasdaq Stock Market.
The Nasdaq is also home to many different types of securities, including stocks, bonds, and
mutual funds. It’s important to note that the Nasdaq is not a physical place like the New York
Stock Exchange (NYSE). Rather, it’s an electronic network that connects buyers and sellers
9] Working of NASDAQ
The Nasdaq is a computerised system that allows investors to trade stocks and other
securities. When you buy or sell shares of stock on the Nasdaq, your order is processed
through this system. This system is called the Nasdaq Stock Market.
The Nasdaq also provides a place for companies to list their stocks. To list on the Nasdaq, a
company must meet certain requirements. For example, a company must have a minimum of
$50 million in market capitalization.
10} Divisions of NASDAQ

The company has three main divisions:
 The Nasdaq Stock Market, which lists more than 3000 companies and provides a variety of
services including trading, listing, market data, and technology solutions
 Nasdaq Global Select Market, which is an all-electronic stock exchange that offers access to
the world’s largest pool of liquidity for institutional investors; and
 Nasdaq OMX Bioscience, operates the world’s largest public market for life sciences
companies
11] Additional Services at NASDAQ
NASDAQ is best known as a stock exchange, but it also provides a variety of other services.
These include:
 Trading: Nasdaq offers trading in more than 3000 securities, including stocks, options, ETFs,
and fixed income instruments
 Listing: Nasdaq is the listing venue of choice for more than 3000 companies, including more
than 2000 of the world’s largest companies
 Market Data: Nasdaq provides real-time and historical market data to investors, traders, and
market participants
 Technology Solutions: Nasdaq provides technology solutions to a variety of clients, including
exchanges, brokers, and financial institutions
Nasdaq is the world’s second-largest exchange operator, and it offers a range of services that
can benefit your investment portfolio. For example, Nasdaq provides:
 A wide range of investment products and services
 Competitive pricing
 Superior technology
 Global reach
Nasdaq is also home to some of the world’s most innovative companies. If you’re looking to
invest in cutting-edge companies, Nasdaq is the place to do it.
So, what does Nasdaq mean for your investments? In short, it means access to a world-class
exchange with a wide range of benefits.
Conclusion
The Nasdaq is an American stock exchange. It was founded in 1971 by the National
Association of Securities Dealers (NASD). It is a computer-based system that allows
securities dealers to trade stocks and other securities over the telephone. When you buy or
sell a security on NASDAQ, your order is routed through this electronic network to the
market maker who quotes the best price. students may want to know about this resource as
they consider their future career paths.

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1] What did Nasdaq stand for?

National Association of Securities Dealers Automatic Quotation System

2] Which country owns Nasdaq?

3] What is The NASDAQ composite?

DIFFERENCE between Nasdaq & Dow Jones

1) NASDAQ comprises stock of companies in technological sector( growth stages)

Because the Nasdaq has a high concentration of companies in the technology sector --

4] How does the NASDAQ Composite Index work?

5] How many companies are in the NASDAQ?

According to the fact sheet for the Fidelity Nasdaq Composite Index

7] Who should invest in the NASDAQ Composite Index?

In fact, billionaire investor Warren Buffett, who is widely considered to be the most

10} Divisions of NASDAQ

11] Additional Services at NASDAQ

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