What Is the NASDAQ Global Market Composite?
The NASDAQ Global Market Composite is a global stock market index comprising 1,450 stocks that represent the NASDAQ Global Market. Stocks in this index must meet NASDAQ’s strict corporate governance necessities and fiscal and liquidity must haves. The Global Market Composite is far much less distinctive than the Global Choose Market Composite.
Key Takeaways
- The NASDAQ Global Market Composite is a global equity index containing 1,450 stocks inside the NASDAQ Global Market.
- The Composite is composed of three distinct tiers: The NASDAQ Global Choose Market, the NASDAQ Global Market, and the NASDAQ Capital Market.
- The Global Choose Market differs from the Global Market in that it is additional distinctive and must meet additional stringent financial and liquidity must haves.
- Companies inside the Capital Market tier meet a lot much less stringent must haves and have lower levels of market capitalization compared to the other two tiers.
Understanding the NASDAQ Global Market Composite
The NASDAQ Global Market Composite stock market index was once as soon as established thru NASDAQ in 2006 when the Nasdaq National Market reduce up into two tiers, the Nasdaq Global Market and the Nasdaq Global Choose Market. It focuses on corporations that do not possess the financial energy to be built-in inside the NASDAQ Global Choose Market Composite. The Global Market Composite is far much less distinctive than the Global Choose Market Composite.
This change thru NASDAQ was once as soon as nominal, as it did not affect document necessities or alter the corporate governance necessities and fiscal and liquidity must haves. The reduce up was once as soon as designed to duplicate the global scope of the index and the firms listed on it.
The NASDAQ Tiers
The NASDAQ had 3 distinct tiers:
- The NASDAQ Global Choose Market (NQGS)
- The NASDAQ Global Market
- The NASDAQ Capital Market
Must haves for inclusion in the NASDAQ Global Choose Market are necessarily essentially the most stringent, and must haves for the NASDAQ Global Market are additional stringent than those for the NASDAQ Capital Market.
Corporate governance must haves are the an identical right through all NASDAQ market tiers. All corporations listed thru NASDAQ must satisfy a lot of financial, liquidity, and corporate governance must haves, and while a company’s securities would perhaps qualify for initial inclusion, NASDAQ would perhaps deny an inventory, when crucial, to be able to offer protection to investors and most people pastime.
The potency of all NASDAQ tiers is in keeping with market capitalization weights. Because of this, the movement of no longer atypical stocks of larger corporations has a greater impact on the movement of each and every index as a whole.
The NASDAQ Global Choose Market Composite
The NASDAQ Global Choose Market index is a portfolio of securities issued thru corporations that meet the most productive necessities for financial and liquidity energy. The beginning position degree of the NASDAQ Global Choose Market Composite was once as soon as the NASDAQ National Market Composite Index, which began in 1984 and was once as soon as in the end modified during the NASDAQ Global Choose Market Composite Index.
The NASDAQ Global Market Index
The NASDAQ Global Market Index is a portfolio of securities issued thru corporations that meet the NASDAQ necessities for financial energy and liquidity. Companies that don’t have the financial energy to be built-in in NASDAQ’s Global Choose Market Composite are built-in in NASDAQ’s Global Market.
The NASDAQ Capital Market Composite
The NASDAQ Capital Market Index is a portfolio of securities issued thru small-cap corporations purchasing and promoting on NASDAQ. Nominally, the ones are smaller corporations that time out a need to raise additional capital. The document must haves for the NASDAQ Capital Market are a lot much less stringent than the other NASDAQ markets.
