What Is the Nasdaq Composite?
The Nasdaq Composite is a stock index that includes almost every company listed on the Nasdaq stock exchange, several thousand in total. It leans heavily toward tech.
What is in it
Nearly all common shares listed on the Nasdaq, from giant tech companies to tiny biotech firms. Bigger companies count for more, so a handful of tech giants move it the most.
Why it is seen as a tech index
Many big tech companies chose to list on the Nasdaq. So when people talk about how tech stocks did today, they often point to the Nasdaq.
Nasdaq Composite vs Nasdaq-100
The Nasdaq-100 holds only the 100 largest non-financial companies on the Nasdaq. The Composite holds almost everything listed there. Their moves are usually close, because the biggest companies dominate both.
How volatile is it?
Because it is tech-heavy, it usually swings more than the S&P 500, rising faster in good times and falling harder in bad times. See volatility.
See it in real companies
Open a company to see what it sells and how it makes money.