Nasdaq Composite Index

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NASDAQ Composite Index

An index of all common stock that trade on NASDAQ. Approximately 4000 stocks are included in the NASDAQ Composite Index. This index was established in 1971.

Nasdaq Composite Index

An index that indicates price movements of securities in the over-the-counter market. It includes all domestic common stocks in the Nasdaq System (approximately 5,000 stocks) and is weighted according to the market value of each listed issue. The Index was initiated in 1971 with a base of 100. Specialized industry indexes are also published.

Nasdaq Composite Index.

The Nasdaq Composite Index tracks the prices of all the securities traded on the Nasdaq Stock Market.

That makes it a broader measure of market activity than the Dow Jones Industrial Average (DJIA) or Standard & Poor's 500 Index (S&P 500).

On the other hand, many computer, biotechnology, and telecommunications companies are listed on the Nasdaq. So the movement of the Index is heavily influenced by what's happening in those sectors.

The Index is market capitalization weighted, which means that companies whose market values are higher exert greater influence on the Index. Market capitalization, or value, is computed by multiplying the total number of existing shares by the most recent sales price.

So, for example, if a stock with 1 million shares increases $3 in value, it has a greater impact on the changing value of the Index than a stock that also increases $3 but has only 500,000 shares.

References in periodicals archive ?
Meyer "Sandy" Frucher, Chairman and CEO of the Philadelphia Stock Exchange, said, "We are pleased to add the NASDAQ Composite Index to our stable of exclusively listed index option products.
The NASDAQ Composite Index is a market capitalization-weighted index of all the common stocks listed on the NASDAQ and is the broadest, most well-diversified real-time representation of the performance of NASDAQ-listed companies.
Futures on the NASDAQ Composite Index are an important step in making the entire basket of NASDAQ securities accessible to a larger segment of retail investors, institutions and professional traders," said John L.
The NASDAQ Composite Index measures approximately 3,400 domestic and international NASDAQ-listed common type stocks.
24 in the January 1-June 30 period, more than double the gains posted by the NASDAQ Composite Index, the New York Stock Exchange Composite Index and the Standard & Poor's 500.
The objective was to most accurately forecast where the Dow Jones industrial average, the Standard & Poor's 500(R) Index and the NASDAQ Composite Index would finish at the close of the stock market on December 7, 2005.
The Nasdaq composite index, which lists many of the world's leading technology companies, was up 99.
52 in the January 1-June 29 period, more than double the gains posted by the NASDAQ Composite Index, the New York Stock Exchange Composite Index and the Standard & Poor's 500.
The Nasdaq composite index, which is dominated by technology bellwethers such as Microsoft and Dell Computer, fell 108.
That increase is more than 60 percent above the rise in the Dow Jones Industrial average; 3-1/2 times the gain in the New York Stock Exchange Composite Index; four times the boost in the Standard & Poor's 500; and 15 times more than the slight uptick in the NASDAQ Composite Index (see accompanying chart.
The increase in the NASDAQ composite index doubled the rise of the Dow Jones Industrials, New York Stock Exchange Composite and the Standard & Poor's 500 in the same nine-month period.
The number of stocks declining each day on the New York Stock Exchange has exceeded the advancing issues for most of the past three months, and the average stock in the Nasdaq Composite Index is down 32 percent from its peak of the past year.