Nasdaq is one of the indexes in the United States (US) stock market and is the second largest index on the Nasdaq exchange. The Nasdaq index is an index that is in great demand by investors, analysts, and fund managers.
If you want to buy American stocks, there are three indices that you must know, including the Dow Jones Industrial Average (DJIA), the Nasdaq Index, and the S&P 500 Index. The Nasdaq Index is a technology-focused stock exchange as the first global electronic marketplace founded by the National Association of Securities Dealers (NASD) in 1971.
The Nasdaq Composite is the first index to contain around 3,000 shares officially listed on the Nasdaq exchange, such as Google, Amazon, Microsoft, and Tesla. Issuers listed on the Nasdaq index usually consist of various companies in various sectors, with the exception of companies in the financial sector.
The capitalization of a company becomes an important thing, because the compilation of issuers in the Nasdaq index is based on their capitalization. Where, every quarter there will be an evaluation and adjustment of the shares in the index. The market capitalization or company value will be calculated by multiplying the total number of shares owned by the latest selling price in the stock market.
For example, such as a company that has 2 million shares whose value has increased to USD3, then that company has a greater impact on the value of changes in the index when compared to shares of a company that has increased USD3 but only has a total of 500 thousand shares.
In the Indonesian stock market, trading hours are from 09.00 WIB to 15.00 WIB, but on the Nasdaq Index trading is carried out non-stop. Throughout the day, the Nasdaq Composite is calculated based on the price that is monitored every second and the Nasdaq Composite is determined and reported when the market closes trading at 4:00 EST.