In the recent times, we have been hearing a lot about NASDAQ. It has been in the news for various reasons and man reporters, new articles, and even financial experts have been talking about it. The NASDAQ is one of the investment options that people have if they are looking at investing in the stock market. For those who do not know what is the NASDAQ, this blog will help you to understand the basics about it.
What is the NASDAQ: A brief introduction
The full form of NASDAQ is National Association of Securities Dealers Automated Quotation. The NASD AKA National Association of Securities Dealers established this. This is a more efficient and faster way to trade stocks. The NASDAQ stock exchange came in much later. Initially, the purpose of the NASDAQ was to provide information on the market values of different stock. With the help of the NASDAQ, a person does not need to have any intermediary handling his or her shares or stocks.
The stocks listed with NASDAQ
Now that you have a basic understanding NASDAQ, let us look at the stocks that are listed with the NASDAQ exchange. Presently, more than 3500 stocks have been listed in the NASDAQ Composite Index. Back in 1971, there were only 2500 stocks. Through the composite index, you can get to know the status of each stock trading that happens under the NASDAQ exchange. It also helps a person to understand various other details that can help a person trade better.
What is the NASDAQ – The terminologies
One of the most commonly used terminologies refers to the movement of the stocks. If a person says that the movement of the NASDAQ stock is upwards, it means that the value is increasing. Similarly, a downside means that the value of the stocks is decreasing.
Another very common term that you will often hear is pertaining to the price-weighted index. This is called Dow Jones Industrial Average. The emphasis of the NASDAQ Index is more towards the market capitalization. The entire index’s value is determined by the price of the stock. The more the price, the more the value.
NASDAQ benefits with composite average
The next thing that we look into while covering the question -What is the NASDAQ – is the composite average. This figure is based on the present price of the share. In this case, the share price is multiplied with the weight of each stock. The result is then dived by a frequently adjusted divisor, which helps us to get the necessary results. This figure gives us the composite average of a particular share price.
If you look at the market figures, you will get to know how good or bad a particular stock is doing. By the end of the day, you can also understand how much you have gained or lost. Apart from that, you also get updated information about the number of stocks sold and bought for the day, along with the quantities.
What is the NASDAQ closing and opening bell?
The closing or opening bells in NASDAQ is very similar to the New York Stock Exchange. With the help of these bells, you can start trading or stop trading for the day. In order to enhance your knowledge in understanding NASDAQ , you have to pay close attention to the trading time. This helps you to determine if you want to trade for the day or not. There are special ceremonies conducted during the closing and opening bells. Many companies have been a part of these ceremonies.
A final note on what is the NASDAQ
In order to maximize your NASDAQ benefits, you have to ensure that you are well versed with the way the market moves. Today, investing in the market has become one of the best ways to save money. As it is a risky move, you have to keep a close watch to ensure that you do not end up in a loss. If you want to get a better understanding of what is the NASDAQ, all you need to do is take your time to learn the market. Starting with small investments and gradually increase them as you begin to master the trade.