Nasdaq Composite Index

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Definition of 'Nasdaq Composite Index'

The Nasdaq Composite Index is a stock market index of the common stocks of over 3,000 companies listed on the Nasdaq stock market. It is one of the most widely followed stock market indexes in the world. The Nasdaq Composite Index is a market-capitalization-weighted index, which means that the weight of each stock in the index is determined by its market capitalization. The Nasdaq Composite Index is a price-weighted index, which means that the price of each stock in the index is used to determine its weight in the index.

The Nasdaq Composite Index was created in 1971. The index is calculated by adding the prices of all of the stocks in the index and dividing by a divisor. The divisor is adjusted to account for changes in the number of stocks in the index and changes in the prices of the stocks in the index.

The Nasdaq Composite Index is a broad-based index of the stock market. It includes stocks from a variety of industries, including technology, telecommunications, healthcare, and financial services. The Nasdaq Composite Index is a good indicator of the overall performance of the stock market.

The Nasdaq Composite Index has been a strong performer over the long term. The index has returned an average of 10.5% per year since its inception in 1971. The Nasdaq Composite Index has also been volatile, with some years seeing large gains and some years seeing large losses.

The Nasdaq Composite Index is a popular investment vehicle for investors. The index can be used to track the performance of the stock market or as a benchmark for other investments. The Nasdaq Composite Index is also a popular investment for index funds and exchange-traded funds (ETFs).

The Nasdaq Composite Index is a valuable tool for investors. The index can be used to track the performance of the stock market, to compare different investments, and to make investment decisions.

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