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Nasdaq

About Nasdaq

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What is Nasdaq?

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. Back in the day, stock exchanges were physical trading floors, where prices were decided in face-to-face negotiations. Nasdaq changed the way stock exchanges functioned. It had no trading floors and let investors buy and sell stocks on a computerised systems.
More than 3,700 companies are listed including some of the largest technology firms in the world such as Apple, Microsoft, Google, and Amazon. The exchange was created by the National Association of Securities Dealers and is overlooked by the US Securities and Exchange Commission.
 
In colloquial language, when people say ‘Nasdaq’, what they refer to is the index and not the stock exchange. What they refer to is the Nasdaq Composite Index, which, is a statistical measure of a portion of the stock market.
 
Nasdaq also has a ‘Nasdaq 100’ index that tracks 100 of the largest and most actively traded equities on the exchange.
 

What is Nasdaq Composite Index?

The Nasdaq Composite Index— commonly known as just ‘Nasdaq’—is one of the most widely used indices. It tracks the performance of stocks that are traded on the Nasdaq stock exchange. It is one of the most popular stock indices tracked by market participants to represent how the market as a whole is performing.
 
To be listed on the exchange, a stock must be listed exclusively on the Nasdaq stock exchange and be a common stock of a US-based company or be an ADR (American depositary receipt) of a foreign firm. Ordinary shares, stocks of limited partnership interests and tracking equities can also be included in the index.
 
Nasdaq is a known to be a tech-heavy index. As of July 2021, technology firms made up half of the index.
 
Nasdaq Composite is a market-cap-weighted index. This means that each company included in the is weighted based on its total market capitalisation. Therefore, companies with bigger market capitalisations have a relatively more significant impact on the performance of the index than firms with smaller m-caps.
 

What is the difference between Nasdaq and NYSE?

NYSE, which is the New York Stock Exchange, is the world’s largest stock exchange based on the total market capitalisation of its listed stocks.
 
The key distinction is that Nasdaq is a dealer’s market, with participants trading through a dealer rather than directly with each other. These dealers maintain stock inventories to buy and sell from their accounts in transactions with customers and other dealers. On the other hand, NYSE is an auction market, which enables investors to transact with each other via designated market makers.
 
While both institutions are based in New York City, the location of transactions for trading on Nasdaq and on the NYSE are different. NYSE retains a physical trading floor and also conducts trades electronically from New Jersey. On the other hand, Nasdaq does not have a physical trading floor.
 
While Nasdaq is a tech-heavy index, NYSE, which was founded in 17,92, is home to many blue chip firms including Walmart and Coca-Cola.
 

What is ‘The Dow’?

The Dow refers to the Dow Jones Industrial Average (DJIA). It is an index just like the Nasdaq Composite and that indicates the performance of overall stock market.
 
The DJIA is not the same as Dow Jones and Company that is owned by News Corp. The index is owned by S&P Dow Jones Indices LLC, a joint venture of S&P Global, CME Group Inc, and News Corp.
 
Started in 1896, DJIA is a price-weighted average of 30 significant equities traded on the NYSE and the Nasdaq.
 

What is the S&P 500 Index?

The Standard and Poor’s 500 Index, which is referred to as the S&P 500 index, is one of the most popular indices in the world.
 
It comprises the shares of 500 publicly traded companies in America with the highest values of market capitalisation.
 
This index is calculated using the free-float market capitalisation method. Free-float market capitalisation refers to the value of shares that are available for public trade.
 
Because S&P 500 tracks the prices of large-cap US equities, it is considered a proxy for showing the health of stock market and the economy. 

Latest Updates on Nasdaq

The Indian exchange accounted for 16.8 per cent of global market share for IPOs, outranking the New York Stock Exchange and Nasdaq, the data showed

Updated On: 20 Dec 2024 | 7:47 AM IST

Stock Market Today: Indian markets took a sharp hit in the previous session as foreign portfolio investors (FPIs) turned wary ahead of the Fed's policy outcome

Updated On: 18 Dec 2024 | 7:33 AM IST

In the previous session, the Sensex settled 843.16 points or 1.04 per cent higher at 82,133.12. Similarly, the Nifty ended higher 219.60 points or 0.89 per cent at 24,768.30

Updated On: 16 Dec 2024 | 7:25 AM IST

The rupee fell 2 paise to near all-time low of 84.85 against the US dollar in early trade on Thursday on the back of foreign fund outflows and rising crude oil prices

Updated On: 12 Dec 2024 | 11:42 AM IST

As the markets prepare to open, the mood is upbeat. At 6:34 AM, the GIFT Nifty futures are trading 28 points higher at 24,762 levels, hinting at a positive start

Updated On: 12 Dec 2024 | 7:26 AM IST

According to Reuters, the deal value would be around $2.8 billion. The offer price is 11 per cent higher than ReNew's closing stock price of $6.34 on December 10 on Nasdaq

Updated On: 12 Dec 2024 | 12:16 AM IST

That represents an 11.5 per cent premium to the stock's closing price of $6.34 on Nasdaq on Dec. 10. The offer's valuation is based on a total of 398.61 million diluted shares outstanding as of Aug 1

Updated On: 11 Dec 2024 | 9:24 PM IST

The company's shares have consistently traded well below a peak of about $12 in February 2021. A buyback of cheap shares could represent an opportunity as the Indian market is set to grow

Updated On: 11 Dec 2024 | 7:32 PM IST

In the previous session, the Sensex settled at 81,510.05, up marginally by 1.59 points. In contrast, Nifty settled at 24,610.05, down 8.95 points, or 0.05 per cent

Updated On: 11 Dec 2024 | 7:42 AM IST

At 6:35 AM, GIFT Nifty futures were trading 50 points higher at 24,753 levels, hinting at an upbeat start

Updated On: 10 Dec 2024 | 7:18 AM IST

Various factors like renewed buying by foreign investors, global cues and improving sentiment among other reasons were seen driving the markets on Thursday.

Updated On: 05 Dec 2024 | 4:09 PM IST

With limited domestic triggers, investors are expected to focus on stock-specific actions and developments in the primary markets

Updated On: 03 Dec 2024 | 7:18 AM IST

Investors will closely monitor quarterly earnings reports alongside manufacturing, composite, and services data for October

Updated On: 24 Oct 2024 | 7:39 AM IST

At 6:41 AM, GIFT Nifty Futures indicated a modest increase of 53 points, reaching 25,102 levels, suggesting a tentative start for the Indian markets.

Updated On: 14 Oct 2024 | 8:12 AM IST

Momentum back; wish next CEO from within Cognizant: Ravi Kumar S

Updated On: 08 Oct 2024 | 12:00 AM IST

At 7:20 AM, GIFT Nifty futures were trading approximately 8 points higher at 25,998 against Nifty futures close, suggesting a muted opening.

Updated On: 01 Oct 2024 | 7:31 AM IST

At 6:32 AM, GIFT Nifty futures were trading about 38 points lower at 26,307 levels, indicating a negative opening compared to the last close of Nifty futures.

Updated On: 30 Sep 2024 | 7:36 AM IST

"FM Smt. @nsitharaman spoke about the key initiatives of Government of India and the potential #investment opportunities in India," the finance ministry said in a post on X

Updated On: 13 Sep 2024 | 10:46 PM IST

The improvement in adjusted Ebitda was attributed to cost optimisation efforts driven by technology and product enhancements

Updated On: 16 Aug 2024 | 9:05 PM IST

The Nasdaq rose more than 2% on Thursday after July the US retail sales data signalled resilient consumer spending, allaying fears of an imminent recession in the world's largest economy.

Updated On: 16 Aug 2024 | 10:57 AM IST