NASDAQ Composite

    Launched in 1971, the NASDAQ Composite is an index of more than 3,000 equities listed on the NASDAQ Index.

    It is perhaps one of the most widely followed indices worldwide and is made up of both US and non-US incorporated companies.

    Companies such as Apple, Microsoft and the stationary supplier, Staples, all list on the NASDAQ Composite and all member stocks are weighted according to their market capitalisation.

    Trading on the NASDAQ Composite

    The Composite index is important for traders because of its wide range of financial instruments and a large number of listings. Investors follow it keenly as it is an excellent indicator in the US markets of how such stocks are performing, particularly growth companies.

    Currently, the main way to trade the index is through an exchange-traded fund called the ONEQ, which tracks the Composite and aims to emulate its performance. A number of fundamentals move the composite including earnings releases from some of the biggest weighted companies (such as Google), dividend increases/decreases, company events/unveilings (such as the Apple iPhone), and much more.

    Further information

    NASDAQ Composite web page

    NASDAQ Composite wikipedia