The NASDAQ is a tech-heavy stock index known to several investors. However, the latter are often not as well understood in terms of composition and function of the major indexes.
1. What is NASDAQ?
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 and must be common stock of an individual company so preferred stocks, exchange-traded funds (ETFs), and other types of securities are excluded.