Nasdaq Composite Index


A market-value weighted index of all common stocks listed on Nasdaq. The Nasdaq Composite dates back to 1971, which is when the Nasdaq exchange was first formalized. The index is used mainly to track technology stocks, and thus it is not a good indicator of the market as a whole. Unlike the Dow Jones Industrial Average (DJIA), the Nasdaq is market value-weighted, so it takes into account the total market capitalization of the companies it tracks and not just their share prices.

Use this term in a sentence

You should try to keep a close eye on the nasdaq composite index so that you have a good feel for the market.

​ Was this Helpful? YES  NO 9 people found this helpful.

The Nasdaq composite index was important for us to take a look at because it had a lot of valuable information in it.

​ Was this Helpful? YES  NO 2 people found this helpful.

Although I don't know enough about specific emerging technologies to feel confident investing in individual companies, I am bullish on technology in general and want to benefit from the growth potential of technology stocks, so I own shares in a Nasdaq Composite Index fund.

​ Was this Helpful? YES  NO 5 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
index S&P 500