The NASDAQ term refers to both the NASDAQ Exchange and the NASDAQ Index, but for now, we’ll focus on the latter. Like the Dow Jones, the NASDAQ simply measures a segment of the market. There are two NASDAQ exchange focused stock indexes: the NASDAQ Composite and the NASDAQ 100.
The NASDAQ Composite index contains all of the stocks that are traded on its namesake exchange, most of which are technology companies. It tracks more than 3,000 stocks and even includes a few international companies as well. This index generally represents investor sentiment in regards to the technology industry and more speculative stocks.
The NASDAQ 100 index tracks the 100 largest non-financial stocks listed on the NASDAQ exchange. It is also heavily focused on the technology sector and is a widely-held tracking index for futures, options, and exchange-traded fund trading. The NASDAQ 100 continues to be the leader among global equities and thus provides vital information into the health of the overall market.
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