The NASDAQ Composite index was first introduced in 1971 and contains more securities than any other indices i.e. it has more than 3000 securities. After you are included in the NASDAQ Composite index, the security is to be listed solely on the NASDAQ stock market and meet other criteria defined by NASDAQ, but it does not have to have its registered seat in the territory of the USA.

Two thirds of the indices consist of technological companies, investors often use it as a measure for defining the health of technological stocks.

The disadvantage of this index is that it is more speculative than other indices. One of the reasons is that the companies listed in the index are considered companies with high growth potential; however, this is often accompanied by a higher risk of such an investment; therefore, the NASDAQ index of greater volatility than other indices.

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