NASDAQ

If you have ever followed financial news, it is impossible not to have heard the name NASDAQ. It is often mentioned alongside the Dow Jones, but with a touch of "tech glamour." But what exactly is it, and why does it influence the global economy so much?

1. Definition: Two Concepts in One

When we talk about NASDAQ, we are essentially referring to two different things that are often confused:

• The Stock Market (NASDAQ Stock Market): This is the electronic marketplace where stocks are bought and sold. Founded in 1971, it made history as the world’s first electronic stock market, eliminating the need for a physical trading floor with shouting and crowding.

• The Index (NASDAQ Composite): This is the statistical index that tracks the performance of the shares of more than 3,000 companies listed on this specific exchange.

2. The "Home" of Technology

NASDAQ is globally known as the home of tech giants. Companies that started in a garage and changed the world chose NASDAQ for their Initial Public Offering (IPO). Some typical examples include Apple, Microsoft, Amazon, Alphabet (Google), Meta (Facebook), and Tesla.

Why there? NASDAQ has traditionally offered more flexible listing requirements compared to the New York Stock Exchange (NYSE) and attracts companies betting on high growth and innovation.

3. How does the market work?

Unlike traditional stock exchanges, NASDAQ operates exclusively through a computer network. Its operation is based on a system of Market Makers. These are professionals who constantly buy and sell shares, ensuring there is always movement (liquidity) in the market so that transactions can be carried out immediately and smoothly.

4. The Key Indices you should know

If you want to track the market, you will encounter two main indices that describe its status:

• NASDAQ Composite: This is the broader index. It includes almost all companies (over 3,000) listed on the NASDAQ exchange, from massive conglomerates to smaller growing businesses.

• NASDAQ-100: This is the most "famous" index. It includes the 100 largest non-financial companies. It is considered the ultimate barometer for the direction of global technology.

5. Why does it matter to us?

Even if you don't invest directly in stocks, NASDAQ plays a role in our lives for several reasons:

1. Innovation Indicator: Its performance shows how much investors trust the future and new technologies, such as Artificial Intelligence and green energy.

2. Pensions and Savings: Many mutual funds and insurance programs worldwide invest in NASDAQ companies.

3. Economic Climate: A steady rise in the NASDAQ indicates optimism for the future, while a sharp drop may signal economic uncertainty or market "bubbles."

In a nutshell

NASDAQ is not just a board with scrolling numbers. It is the heart of the digital economy and the mirror of technological progress. If technology is the engine driving the 21st century, NASDAQ is its "fuel" and "control center."