Nasdaq Composite
A market-cap-weighted index of all ~3,000+ companies listed on the Nasdaq exchange, with heavy weighting toward technology.
The Nasdaq Composite is one of the three major US stock indices, covering virtually every security listed on the Nasdaq exchange. Because Nasdaq historically attracted technology, biotech, and growth companies, the index is heavily tech-weighted and more volatile than the S&P 500.
The mega-cap tech names — Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia — dominate the Nasdaq Composite weighting. When tech leads, the Nasdaq outperforms; in rate-rising environments, its high-duration growth multiples compress harder.
The Nasdaq-100 (NDX) is a subset tracking the 100 largest non-financial Nasdaq listings and is the basis for the popular QQQ ETF — more liquid and tradable than the full Composite.
Related Terms
Dow Jones Industrial Average
A price-weighted index of 30 major US blue-chip companies. The oldest US stock index, widely covered in media but less representative than the S&P 500.
BeginnerETF
A basket of securities that trades on an exchange like a single stock. ETFs give instant diversified exposure to an index, sector, or theme.
BeginnerLarge Cap
Companies with a market capitalization generally above $10 billion. Large caps are the most liquid, most-analyzed tier of the stock market.
BeginnerNYSE
The world's largest stock exchange by market capitalization, located at 11 Wall Street in New York City.
BeginnerS&P 500
A market-cap-weighted index of 500 large US companies. The most widely used benchmark for US stock market performance.
BeginnerTicker Symbol
The unique letter code that identifies a publicly traded security on an exchange — AAPL for Apple, TSLA for Tesla.
Beginner