What is the definition of NASDAQ
As a stock market for beginners information there are two main things that need you need to know as an investor which are primarily the Dow Jones Industrial Average and the NASDAQ but then there are other things that you may need to understand as you go into that deeper about the working of NASDAQSome of the basic things that I am going to cover is the
NASDAQ components
NASDAQ holidays
Dow Nasdaq and what do they mean to you
NASDAQ ticker
NASDAQ chart
Let us start with NASDAQ history and how it all started. NASDAQ was started in 1971 by the National Association of Securities Dealers and at that time it was just a bulletin board service providing the quotes and there was no way that you can connect buyers and sellers .
Since then it has gone to form the computer based trading where the trades go through a electronic system and the buyers and sellers get connected via computer based trading facility.
As far as the company that owns NASDAQ, it is the NASDAQ-OMX group which now owns the Nordic based exchange OMX also has control of the Philadelphia stock exchange called PHLX and it now as about eight stock exchanges in Europe. It also has the stake in Dubai Stock exchange and that means it is now a serious competition to NYSE -Euronext.
I will explain difference between NASDAQ and NYSE a little later in the post because a stock market for beginners you should know that.
NASDAQ Stands for National Association of Securities Dealers Automated Quotation.
This NASDAQ definition now kind of gives enough insight into what the exchanges was supposed to give originally and how it works in an automated fashion.
NASDAQ after hours trading
NASDAQ offers after hours trading and pre market trading in between the following times which means that you can gauge the market sentiment before the market opens up for that day and also get to trade in the post market session to make sure that you can take part in stock market activity in case of any news and any other big happening after the market close. Then you ca go ahead and buy stock when the market opens.
Pre Market – 7AM-9.30 AM
After hours session is – 4:00PM -8:00PM
What is NASDAQ 100 and what is NASDAQ composite.
These are two main indices which NASDAQ offers and I will explain NASDAQ 100 to help you understand how the NASDAQ index works.
But first the listing of the NASDAQ 100 companies and these companies may change from time to time
Company Name
Activision Blizzard, Inc (ATVI)
Adobe Systems Incorporated(ADBE)
Akamai Technologies, Inc.(AKAM)
Altera Corporation(ALTR)
Amazon.com, Inc.(AMZN)
Amgen Inc.(AMGN)
Amylin Pharmaceuticals, Inc.(AMLN)
Apollo Group, Inc.(APOL)
Apple Inc.(AAPL)
Applied Materials, Inc.(AMAT)
Autodesk, Inc.(AUD)
Baidu.com, Inc.(BIDU)
Bed Bath & Beyond Inc.(BBBY)
Biogen Idec Inc(BIIB)
Broadcom Corporation(BRCM)
C.H. Robinson Worldwide, Inc.(CHRW)
CA Inc.(CA)
Cadence Design Systems, Inc.(CDNS)
Celgene Corporation(CELG)
Cephalon, Inc.(CEPH)
Check Point Software Technologies Ltd.(CHKP)
Cintas Corporation(CTAS)
Cisco Systems, Inc.(CSCO)
Citrix Systems, Inc.(CTXS)
Cognizant Technology Solutions Corporation(CTSH)
Comcast Corporation(CMCSA)
Costco Wholesale Corporation(COST)
Dell Inc.(DELL)
DENTSPLY International Inc.(XRAY)
Discovery Communications, Inc(DISCA)
DISH Network Corporation(DISH)
eBay Inc.(EBAY)
Electronic Arts Inc.(ERTS)
Expedia, Inc.(EXPE)
Expeditors International of Washington, Inc.(EXPD)
Express Scripts, Inc.(ESRX)
Fastenal Company(FAST)
Fiserv, Inc.(FISV)
Flextronics International Ltd.(FL;EX)
FLIR Systems, Inc.(FLIR)
Focus Media Holding Limited(FMCN)
Foster Wheeler Ltd.(FWLT)
Garmin Ltd.(GRMN)
Genzyme Corporation(GENZ)
Gilead Sciences, Inc.(GILD)
Google Inc.(GOOG)
Hansen Natural Corporation(HANS)
Henry Schein, Inc.(HSIC)
Hologic, Inc.(HOLX)
IAC/InterActiveCorp(IACI)
Infosys Technologies Limited(INFY)
Intel Corporation(INTC)
Intuit Inc.(INTU)
Intuitive Surgical, Inc.(ISRG)
Joy Global Inc.(JOYG)
Juniper Networks, Inc.(JNPR)
KLA-Tencor Corporation(KLAC)
Lam Research Corporation(LRCX)
Lamar Advertising Company(LAMR)
Leap Wireless International, Inc.(LEAP)
Level 3 Communications, Inc.(LVLT)
Liberty Global, Inc.(LBTY)
Liberty Media Corporation(LMDI)
Linear Technology Corporation(LLTC)
Logitech International S.A.(LOGI)
Marvell Technology Group, Ltd.(MRVL)
Microchip Technology Incorporated(MCHP)
Microsoft Corporation(MSFT)
Millicom International Cellular S.A.(MICC)
Monster Worldwide, Inc.(MWW)
NetApp, Inc.(NTAP)
NII Holdings, Inc.(NIHD)
NVIDIA Corporation(NVDA)
Oracle Corporation(ORCL)
PACCAR Inc.(PCAR)
Patterson Companies Inc.(PDCO)
Paychex, Inc.(PAYX)
PetSmart, Inc(PETM)
QUALCOMM Incorporated(QCOM)
Research in Motion Limited(RIMM)
Ryanair Holdings plc(RYA)
SanDisk Corporation(SNDK)
Sears Holdings Corporation(SHLD)
Sigma-Aldrich Corporation(SIAL)
Sirius XM Radio Inc.(SIRI)
Staples, Inc.(SPLS)
Starbucks Corporation(SBUX)
Steel Dynamics, Inc.(STLD)
Stericycle, Inc.(SRCL)
Sun Microsystems, Inc.(JAVA)
Symantec Corporation(SYMC)
Teva Pharmaceutical Industries Limited(TEVA)
The DIRECTV Group, Inc.(DTV)
VeriSign, Inc.(VRSN)
Vertex Pharmaceuticals Incorporated(VRTX)
Virgin Media Inc.(VMED)
Whole Foods Market, Inc.(WFMI)
Wynn Resorts, Limited(WYNN)
Xilinx, Inc.(XLNX)
Yahoo! Inc.(YHOO)
There are certain criteria as to why and how the company is included into the index but primarily the main criteria is
1. The security’s U.S. listing must be exclusively on the Nasdaq National Market (unless the security was dually listed on another U.S. market prior to January 1, 2004 and has continuously maintained such listing);
2. The security must be of a non-financial company;
3. The security may not be issued by an issuer currently in bankruptcy proceedings;
4. The security must have average daily trading volume of at least 200,000 shares;
NASDAQ 100 is the stock market index of 100 largest domestic and international non-financial companies on the NASDAQ. This index is the modified market value weighted index, which essentially means that companies have weights based on the market capitalization.
Two main differences between NASDAQ 100 and Dow Jones and S&P 500 is that these companies do exclude non financial companies from being part of the index and also these do not have the non US companies in the index which NASDAQ does have.
Again I will explain what is difference between NASDAQ-100 and the NASDAQ Composite which is commonly referred to as the NASDAQ in the media.
NASDAQ composite is the stock market index of all the common stocks and similar securities which includes ADR’s, tracking stocks and limited partnership interests. What this means is that NASDAQ composite has about 3000 components which practically all the stocks that are listed on the NASDAQ.
It is followed very thoroughly as an indicator of the performance of the US economy and that means that it is a true indicator of the health of the technology stocks and the growth stocks.
When NASDAQ composite was launched
NASDAQ composite was launched in 1971 with a base of 100 points and this index is market capitalization weighted.
Here is what the NASDAQ site has to say about it as far inclusion criteria goes “To be eligible for inclusion in the Composite the security’s U.S. listing must be exclusively on the Nasdaq Stock Market (unless the security was dually listed on another U.S. market prior to January 1, 2004 and has continuously maintained such listing), and have a security type of either:
American Depositary Receipts (ADRs)
Common Stock
Limited Partnership Interests
Ordinary Shares
Real Estate Investment Trusts (REITs)
Shares of Beneficial Interest (SBIs)
Tracking Stocks
Security types not included in the Index are closed-end funds, convertible debentures, exchange traded funds, preferred stocks, rights, warrants, units and other derivative securities. ”
Something on the NASDAQ Penny Stock List
Penny stocks have no minimum listing requirements and hence they are traded on the OTCBB exchange and as far as the penny stocks on NASDAQ go they were there when the tech bubble burst but they either have to shore up their balance sheets or they have to delist.a Always research properly before investing.
Related posts:
- Explain NASDAQ for beginners
- NASDAQ 100 pre market indicator and the NASDAQ 100 after Hours Indicator
- EMini Trading – E-mini S&P 500, E-mini NASDAQ and Emini Dow Jones
- Hot stocks to buy – Buy tech stocks, Best tech stocks of the year
- What is the Hang Seng Index?
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