What is NASDAQ?
The Nasdaq is the acronym for the National Association of Securities Dealers Automated Quotation and is the second largest automated electronic stock exchange in the United States.
It specialises in understanding high-tech companies in electronics, computer science, telecommunications, biotechnology, etc.
The Nasdaq is not located in a physical trading floor but in a telecommunications network. People are not at a place on the stock exchange where purchase transactions are offset against sales transactions on behalf of investors.
It has its own indices:
- NASDAQ-100 index: including one hundred of the largest companies listed on this stock exchange based on the sales volume of their shares. This index reflects those companies dedicated to telecommunications, hardware and software, but does not contain financial or purely investment companies.
- NASDAQ Composite index: the group of shares listed on this electronic stock exchange, including over 3,000 companies regardless of their line of business. This can include financial and investment companies as well as technology companies in general.
- NASDAQ Biotechnology index: lists pharmaceutical and biotechnology companies that are listed on the NASDAQ Composite. It is a requirement that the companies that want to join this index are only listed within the NASDAQ and have a trading volume of more than 100 thousand shares.