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NASDAQ Global Market Composite

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
September 20th, 2023
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Definition

The term NASDAQ Global Market Composite refers to a stock market index created by NASDAQ, a global financial technology, trading and information services provider. The NASDAQ Global Market is comprised of 1,450 companies passing the quality standards established by the NASDAQ.

Explanation

The NASDAQ Global Market index is a portfolio of 460 securities issued by companies that meet the exchange's standards for financial and liquidity strength. While corporate governance requirements are the same across all three market tiers, companies that do not have the financial strength to be included in NASDAQ's Global Select Market Composite are included in NASDAQ's Global Market. Smaller companies looking to raise capital are included in the Capital Market tier.

The index was created in 2006, when NASDAQ split their market into three tiers. Performance of the composite is calculated based on market capitalization weights, which means the movement of common stocks of larger companies in the index, in terms of market capitalization, has a greater impact on the movement of the index. The performance of the index can be tracked using the stock ticker NQGM.

Related Terms

S&P 400 Mid Cap Index, S&P 100, NASDAQ OMX 100 Index, NASDAQ Global Select Market Composite

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