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It was created as an alternative to the NYSE so as to give new, emerging companies a way into the stock market. The NASDAQ started trading on February 8, 1971. The purpose of this article is to provide a brief history of the NASDAQ, explain how it’s different from the NYSE and the Dow Jones Index, and why the NASDAQ is important to investors. However, investors can purchase an index fund that is similar to a mutual fund or an ETF and is made up of the stocks in the index. The index is a mathematical average of the stocks that are listed. This index measures over 3,000 stocks listed on the NASDAQ exchange and includes the world’s leading tech stocks including the FAANG stocks. When you hear that the “NASDAQ” was up or down, they are referring to the index. Although they are heavily weighted in technology, you will also see them as a leader in fields such as healthcare and biotech, energy and industrials and financial services.Īnd the NASDAQ is also an index which is referred to as the NASDAQ Composite. The NASDAQ exchange lists stocks from virtually every sector of the economy. It is the second largest stock exchange in the world. and serves as an international electronic marketplace where investors can buy and sell securities. The NASDAQ stock exchange is owned by Nasdaq, Inc. NASDAQ is an acronym for the National Association of Securities Dealers Automated Quotations. 7 Stocks with the Pricing Power to Push Through High Inflation.7 Blue-Chip Dividend Stocks That Won’t be Impacted by Rising Interest Rates.
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