nasdaq
The National Association of Securities Dealers Automated Quotations — an American stock exchange known for listing technology companies.
Example
“Apple, Google, and Amazon are all listed on the NASDAQ.”
Memory Tip
NAS-DAQ — National Automated Stock exchange. Known for tech stocks.
Why It Matters
NASDAQ matters because it is where many of the world's most valuable technology companies are listed and traded. If you own stocks, mutual funds, or exchange-traded funds, you likely have exposure to NASDAQ-listed companies like Apple, Microsoft, and Amazon. Understanding NASDAQ helps you track the overall health of the tech sector and the broader market.
Common Misconception
Many people mistakenly believe that NASDAQ is only for small or startup companies. In reality, NASDAQ hosts some of the largest and most established companies in the world. While it does have many growth-oriented firms, it also includes mature blue-chip technology companies that are fundamental to the global economy.
In Practice
If you invested 10,000 dollars in a technology-focused index fund that tracks NASDAQ companies in 2015, your investment would have grown to approximately 50,000 dollars by 2021 due to the strong performance of companies like Tesla, Nvidia, and Netflix during that period. This example shows how NASDAQ-listed stocks can significantly impact your investment returns over time.
Etymology
Acronym for National Association of Securities Dealers Automated Quotations — the first electronic stock market.
Common Misspellings
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Related Terms
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See Also
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