This means that each security affects the Index in proportion to it's market value. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index. The following criteria are employed in determining the appropriate index classification for a particular class of securities. There is no distinction between either the Nasdaq National Market vs. The Nasdaq SmallCap Market, or domestic US vs. Non-US securities. Inc. The Index reflects Nasdaq's largest companies across major industry groups.
Index makes it an effective vehicle for investors, arbitrageurs and securities traders.
In January 1994, options on the Nasdaq-100 Index began trading on the Chicago Board Options Exchange. The Chicago Mercantile Exchange began to trade futures and futures options on the Nasdaq-100 Index in April of 1996. Inc. Today the Nasdaq Composite includes over 5,000 companies, more than most other stock market indices. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indices. The Nasdaq Bank Index contains all types of banks and savings institutions and related holding companies, establishments performing functions closely related to banking, such as check cashing agencies, currency exchanges, safe deposit companies and corporations for banking abroad.