Nasdaq Composite Index

Introduced in 1971, the Nasdaq Composite is a broad based index comprising over 3000 companies listed in the Nasdaq Stock Exchange. The index value is computed using the market capitalization weighted methodology.

The Nasdaq Composite Index is widely followed as the leading indicator of the overall performance of technology companies and growth companies. As both U.S and non-U.S. companies are listed on the Nasdaq Stock Market, the Nasdaq Composite is not an exclusively U.S. index.

To be eligible for inclusion in the Nasdaq Composite Index, a security's U.S. listing must be exclusively on the NASDAQ Stock Market (with the exception that if the stock was dually listed on another U.S. market prior to 2004 and has continuously maintained such listing), and have a security type of either:

  • American Depositary Receipts (ADRs)
  • Common Stock
  • Limited Partnership Interests
  • Ordinary Shares
  • Real Estate Investment Trusts (REITs)
  • Shares of Beneficial Interest (SBIs)
  • Tracking Stocks

Not included in the Nasdaq Composite Index are closed-end funds, convertible debentures, exchange traded funds, preferred stocks, rights, warrants, units and other derivative securities.

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