Stock Market Glossary
NASDAQ
US technology exchange and namesake of well-known indices such as NASDAQ 100.
In brief: US technology exchange and namesake of well-known indices such as NASDAQ 100.
Meaning in practice
The NASDAQ is a fully electronic marketplace and is home to many large tech companies. The NASDAQ 100 contains the largest non-financial stocks on the stock market and is an important barometer of sentiment for the tech sector.
Context for investors and traders
For investors, the term becomes practical in the context of objectives, time horizon, risk capacity and costs. A suitable solution can differ between two people even when they consider the same product or metric.
How to use this in practice
The term becomes practical when expressed in numbers: what is the position weight, which costs apply, what loss is possible and what role does it play in the portfolio? These questions prevent an otherwise useful product from becoming too large or being used at the wrong time.
What to keep in mind
Include taxes, spreads, product structure and personal liquidity reserves in comparisons. Historical returns and a fund’s or index’s characteristics describe the past, not a promised future result.
