Definition
The term NASDAQ Composite describes a stock exchange indicator created in 1971 from NASDAQ, a world wide fiscal technology, trading and data services provider. The NASDAQ Composite is but one among the indices regarded as a sign of the overall health of the stock exchange.
Explanation
The NASDAQ Composite is really a portfolio of almost 3,000 common equites believed to be representative of the whole stock exchange. An thinly traded fund (ETF) NASDAQ: ONEQ provides investors with an chance to be given a return on investment which matches with the total functioning of the indicator. Performance of this publication is seen utilizing the stock ticker COMP.
The indicator incorporates large organizations, as measured by market capitalization, also comprises both dividend-paying securities in addition to stocks. Securities contained at the NASDAQ has to be recorded solely about the NASDAQ Stock Market. Unlike the S&P 500 Index, that just comprises common stock, securities comprised within the NASDAQ Composite comprise American Depository Receipts (ADR), average inventory, Limited Partnership Interests, Real Estate Investment Trusts (REITS), Shares of Beneficial Interest (SBI) in addition to trading stocks.
The indicator is calculated using market capitalization, meaning stocks with high market capitalization values have a bigger effect on the movement of their indicator. A divisor is employed to keep the equilibrium of this indicator and corrects for assorted financial activities like stock prices, dividend payouts, and divestitures. The financial value of this indicator is updated every time throughout the trading day. A conclusion of day value is calculated in 4:16 p.m. EST.
On March 10, 2000, the NASDAQ Composite struck a record high in 5,132.52. On October 9, 2002after a bursting of the dotcom bubble, the indicator could collapse into 1114.11, a lack in 78% by the March 2000 album high.
