Finance Glossary
NASDAQ 100
What is NASDAQ 100?
The NASDAQ 100 is a major stock market index that includes the 100 largest non-financial companies listed on the NASDAQ, the second largest stock exchange in the world after the NYSE.
This index includes giants in technology and consumer sectors such as Apple, Microsoft, Amazon, Alphabet (Google), Facebook (Meta), Intel, and NVIDIA.
Created on January 31, 1985, the NASDAQ 100 is designed to reflect the performance of the leading high-growth companies in the market.
Since 1998, the index has also included foreign companies, which enhances its international dimension.
The index is composed of companies from various economic sectors, with a strong representation of technology, consumer goods, healthcare, industry, and communication services companies.
The NASDAQ 100 is weighted by market capitalization, which means that companies with a higher market capitalization have a greater weight in the index.
The NASDAQ 100 is often used as a barometer of the performance of high-tech and consumer companies, which are often at the forefront of innovation and economic growth.
It is considered a key indicator of economic health and the performance of high-growth stocks.
In addition to the NASDAQ 100, there are other associated indices such as the NASDAQ Composite, which includes all stocks listed on the NASDAQ, and the NASDAQ-100 Technology Sector Index, which focuses exclusively on technology companies.