The NASDAQ is a one of the US stock market indexes of common stock which is a security of corporate equity ownership. NASDAQ is also an index for securities such as ADRs, tracking stocks and limited partnership interests. NASDAQ has over 3000 components. What began forty years ago as the National Association of Securities Dealers paved way for investors to buy and sell stocks in a fast and transparent way. The National Association of Securities Dealers became the National Association of Securities Dealers Automate Quotation (NASDAQ) on February 1971.
The NASDAQ 100 is a stock market index of the 100 largest companies listed on the NASAQ, this does not include financial companies. The NASAQ is a modified capitalization weighted index. The NASDAQ includes companies incorporated outside the United States. Both the modified capitalization weighted index and inclusion of companies incorporated outside the US sets the NASDAQ apart from the other US stock market index such as S&P 500 and Dow Jones.
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December 13, 2011 | by John Greener |