Nasdaq Composite Index

What is the 'Nasdaq Composite Index'

The Nasdaq Composite Index is the market-capitalization weighted index of the more than 3,000 common equities listed on the Nasdaq stock exchange. The types of securities in the index include American depositary receipts, common stocks, real estate investment trusts (REITs) and tracking stocks. The index includes all Nasdaq listed stocks that are not derivatives, preferred shares, funds, exchange-traded funds (ETFs) or debentures.

BREAKING DOWN 'Nasdaq Composite Index'

Unlike other market indexes, the Nasdaq composite is not limited to companies that have U.S. headquarters. It is very common to hear the closing price of the Nasdaq Composite Index reported in the financial press, or as part of the evening news.

RELATED TERMS
  1. NASDAQ Global Market Composite

    An index made up of stocks that represent the Nasdaq Global Market. ...
  2. NASDAQ Global Select Market Composite

    A market capitalization-weighted index made up of U.S.-based ...
  3. NYSE Composite Index

    An index that measures the performance of all stocks listed on ...
  4. Composite

    A grouping of equities, indexes or other factors combined in ...
  5. Composite Index

    A grouping of equities, indexes or other factors combined in ...
  6. Nasdaq 100 Index

    An index composed of the 100 largest, most actively traded U.S ...
Related Articles
  1. Mutual Funds & ETFs

    Index Investing: The Nasdaq Composite Index

    The Nasdaq Composite Index represents all the stocks that trade on the Nasdaq stock market. The recent surge in popularity of technological stocks has launched the Nasdaq into the spotlight. ...
  2. Investing

    How Nasdaq Makes Money

    NASDAQ provides a marketplace which offers money-making opportunities to investors. Investopedia explains how NASDAQ makes money.
  3. Investing Basics

    Understanding NASDAQ

    NASDAQ is an acronym that stands for the National Association of Securities Dealers Automated Quotation system.
  4. Investing Basics

    An Introduction To Stock Market Indexes

    Investopedia explains the five most talked about indexes and what makes them all different.
  5. Professionals

    Average Market Returns

    We look at the major indexes and their average yearly returns.
  6. Mutual Funds & ETFs

    Index Investing: Conclusion

    We hope this tutorial has given you insight into how you can track the market, use it as a benchmark and make investments. Some points to remember: An index is a statistical measure of the changes ...
  7. Investing Basics

    The Pros and Cons of Indexes

    Learn about the advantages and disadvantages of stock indexes and passive index funds. Discover how there is an opportunity cost to using index funds.
  8. Professionals

    Domestic vs. Global Indexes

    CFA Level 1 - Domestic vs. Global Indexes. Learn the differences between domestic and global indexes. Provides examples of each, including bond and composite indexes.
  9. Mutual Funds & ETFs

    3 Fidelity Funds Rated 5 Stars by Morningstar

    Discover three Fidelity mutual funds that have received five-star overall ratings from Morningstar.
  10. Investing

    Strategies To Trade The Nasdaq Index

    The Nasdaq is by far the best-known technology index in the world, and there are plenty of strategies to trade on the Nasdaq using ETFs and options.
RELATED FAQS
  1. Where can I find all of the stocks in the Nasdaq Composite Index?

    Few stock market indices are as misunderstood as the Nasdaq Composite Index. Due to the burst of the dotcom bubble in 20 ... Read Answer >>
  2. What is the difference between the QQQ ETF and other indexes?

    Find out more about the PowerShares QQQ Trust, the index the QQQ tracks, and the difference between QQQ, the SPY and Nasdaq ... Read Answer >>
  3. What are the most important equity market indexes?

    Discover the most important equity market indexes. Stock market indexes are tools to evaluate the performance of the stock ... Read Answer >>
  4. What are the most common market indicators to follow the U.S stock market and economy?

    Understand some of the key indicators analysts use to follow the U.S. stock markets and to assess the overall condition of ... Read Answer >>
  5. Why is the Nasdaq more heavily weighted to tech stocks than other stock exchanges?

    Learn how the Nasdaq attracts technology companies due to its focus on using advanced financial technology to improve the ... Read Answer >>
  6. What are the advantages and disadvantages of listing on the Nasdaq versus other stock ...

    Discover some of the primary advantages and disadvantages that exist for companies listed on the Nasdaq exchange rather than ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center