Nasdaq 100 Index

Definition

The NASDAQ-100 Index is composed of the 100 largest and most actively traded companies listed on the NASDAQ Stock Exchange. This index includes companies from various industries such as manufacturing, technology, and healthcare, but excludes financial industry companies like commercial and investment banks.

Origin

The NASDAQ-100 Index was established in 1985 to provide a benchmark for the performance of non-financial companies. With the rapid growth of the technology sector, the index has become a focal point for global investors.

Categories and Features

The NASDAQ-100 Index primarily covers industries such as technology, consumer services, and healthcare. It is characterized by high growth potential and high volatility, making it suitable for investors with a higher risk tolerance. By excluding financial companies, the index better reflects market trends driven by technology and innovation.

Case Studies

Apple Inc. is a member of the NASDAQ-100 Index, and its stock performance significantly impacts the index. Apple's innovative products and market strategies have made it one of the world's most valuable companies. Another example is Amazon.com Inc., whose rapid growth in e-commerce and cloud computing has also driven the NASDAQ-100 Index upward.

Common Issues

Investors often confuse the NASDAQ-100 Index with the NASDAQ Composite Index. The former includes only 100 non-financial companies, while the latter encompasses all companies listed on NASDAQ. Additionally, due to its high volatility, investors should be aware of market risks.