Question
How is the nasdaq calculated?
Interesting Question? 
(3) 
(9)
(3) (9)
Answers (1)
24th Nov 2009 by Tobias John Sterling
"The Nasdaq" commonly refers to the NASDAQ Composite index, one of a number of indices which track stocks traded on the NASDAQ. Unlike (for example) the NASDAQ-100, which is much more select, the Composite tracks all the common stocks and similar securities (things like ADRs and tracking stocks) traded on the exchange. This excludes only things such as ETFs and convertible debentures. The numerical value of the index (currently 2166.96 [Nov 2009]) is based on the changes in prices of the listed stocks since the exchange began (it began in 1971 with an arbitrary value of 100). Note that the Composite is market capitalization-weighted, meaning that changes in prices in stocks in companies with higher market capitalizations will have more impact on the index than changes in prices in stocks in companies with lower market capitalizations.
"The Nasdaq" commonly refers to the NASDAQ Composite index, one of a number of indices which track stocks traded on the NASDAQ. Unlike (for example) the NASDAQ-100, which is much more select, the Composite tracks all the common stocks and similar securities (things like ADRs and tracking stocks) traded on the exchange. This excludes only things such as ETFs and convertible debentures. The numerical value of the index (currently 2166.96 [Nov 2009]) is based on the changes in prices of the listed stocks since the exchange began (it began in 1971 with an arbitrary value of 100). Note that the Composite is market capitalization-weighted, meaning that changes in prices in stocks in companies with higher market capitalizations will have more impact on the index than changes in prices in stocks in companies with lower market capitalizations.
Like This Answer? (0) (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com
(0) (0)
4th Nov 2009 In Investing
1 Answers | 154 Views
Subjects: nasdaq,