Lets know about the US-Markets
What is Nasdaq Composite Index?
The Nasdaq Composite Index, in a simple word known as ‘Nasdaq’—and it is one of the most widely used indices. It tracks the performance of stocks that are listed and traded on the Nasdaq stock exchange. It is most popular stock indices tracked by market participants to represent how market as a whole is performing.
To be listed on the stock exchange, it is most important ,a stock must be listed on the Nasdaq stock exchange and be a quotidian stock of a United states based company or be an ADR (American depositary receipt) of a foreign companies. Ordinary shares, stocks of limited partnership firms and tracking equities can also be included in the index. Lets know about the US-Markets
Nasdaq is a known as tech-heavy index. As on the July 2021, technology companies have made up half of the index.it can be said Nasdaq is represents to Technology companies. NASDAQ index represent to the stocks of information technology companies of the world. when NASDAQ show gains in the indices all the technology shares moves upward and vice versa.
Nasdaq Composite is a market-cap-weighted index. It means each company included in the weighted based on its total market capitalisation. Hence, companies with bigger market capitalization have a more significant impact on the performance of the index than companies with smaller market capitalisations.
What is the difference between Nasdaq and NYSE(New York Stock Exchange)?
The NYSE, which known as “New York Stock Exchange” and it is largest stock exchange of the world based on the total market capitalisation of listed stocks of New York Stock Exchange itself.
The key and most important difference is that Nasdaq is a market of dealers with participants trading through a dealer rather than directly trading with each other. These all the dealers maintain the management information system of stock to buy and sell from their accounts in transactions with customers and other dealers. On other hand, NYSE is an auction market, which enables and gives freedom or rights to investors to do trading with each other through designated market makers.Lets know about the US-Markets
While both institutions are located in New York City, But The location of trading transactions for trading on Nasdaq and on the NYSE(New York Stock Exchange) are different. The NYSE(New York Stock Exchange) retains a physical trading floor and
also keeps and conducts trades electronically from New Jersey. On other hand, Nasdaq does not have or offer a physical trading floor.
While Nasdaq is a technology heavy index, NYSE(New York Stock Exchange ) is a home to many blue chip companies including giant and big companies like Walmart and Coca-Cola.
What is ‘The Dow’?
In simple word, DOW means the Dow Jones Industrial Average (DJIA). Dow jones is an index just like Nasdaq index and Indicates the performance and out-put of overall stock market.
The DJIA (Dow Jones Industrial Average) is a price-weighted average of 30 significant equities traded on the NYSE(New York Stock Exchange) and the Nasdaq.
