NASDAQ OMX 100 Index – Financial Encyclopedia

What is NASDAQ

NASDAQ is an index of the exchange of the same name, which is calculated by determining the weighted average price of all listed shares.

The main factors influencing the index price:

You should pay attention first of all to changes in the value of securities of these giants, since they have the largest capitalization in the share of the NASDAQ index.

History of appearance

In 1936, a self-regulatory organization was created in the USA, uniting all independent brokers. It was called the National Association of Stock Dealers (NASD).

At the end of the 60s of the last century, computer technology began to develop at a rapid pace. On the basis of NASD, the NASD Automated Quotations (NASDAQ) automated system was created, which in the 80s was transformed into the exchange that exists to this day.

The NASDAQ composite index itself was created in 1971. Subsequently, several of its varieties appeared, reflecting the situation in the field of computer technology.

Today, the NASDAQ exchange is the second largest stock exchange in the world (after the NYSE) with a capitalization of more than 11 trillion. dollars.

How does the NASDAQ exchange work?

Thanks to the constant improvement of technology, today you can trade a wide variety of securities on the stock exchange - shares of large corporations and start-up companies. In total, more than 60,000 quotes are traded on the exchange.

Investors from different countries take part in the auction. Trading sessions take place on weekdays from 9.00 to 16.00 local time and are available online from anywhere in the world.

Trading is carried out within two sections:

NASDAQ National Market is a market for large companies. Listing for this section is determined by strict selection conditions, the main one of which is a high level of capitalization.
NASDAQ Small Cap Market is a market for small, predominantly “young” issuers. Includes about 2,000 companies representing startups in high-tech industries.

Match Group

Match Group is the company behind the popular mobile dating app Tinder, as well as other online dating services. With offline dating methods largely on hold throughout 2021 due to the pandemic, Match tools are in high demand. The company has a global reach, and recently its international business has been growing even better than its domestic market.

Long-term trends favor online dating, so Match has the opportunity to continue to grow beyond 2021. Despite the stock rising more than 90% in 2021, Match Group still has room to grow this year.

The principle of calculating the Nasdaq index

As already noted, the NASDAQ index is a weighted average of the value of all securities at the close of trading. The calculation of the index can be represented as a formula:

\[ NASDAQ_Composite=\frac{Cap_1+…+Cap_n}{N}, \]

Cap=P*Q,

where Cap is capitalization;

P – share price at the close of trading; Q – number of securities; N is the number of companies whose securities are included in the calculation of the index.

Rebalancing (revision of the composition of the NASDAQ index) is carried out more often than a similar procedure for the S&P 500 due to the fact that the NASDAQ calculation includes newly created companies, not all of which subsequently generate sufficient profit.

Okta

Okta stock is up 133% in 2021, and it's easy to see why. When your entire workforce must move to the cloud due to the constraints of having so many employees working offline in one location, you'll need the identity verification software platform that Okta provides to ensure that your vital sensitive information remains secure.

This increased demand translated into revenue growth, with Okta's third-quarter sales up 42% year-over-year. The biggest news from Okta is that large financial institutions are finally starting to take an interest in the company's services. Since banks tend to be the last to adopt new technologies, this milestone is important for Okta and will provide additional revenue growth in 2021 and beyond.

How to get on the Nasdaq exchange

An investor who wants to get on the NASDAQ exchange must have access to a licensed broker operating on international exchanges. In addition, if you choose a Russian broker, you must have the status of a qualified investor. To obtain this status, there are two conditions:

the amount placed on the accounts is at least 6 million rubles;
have at least 2 years of experience in financial markets.

So, we list several ways to enter the NASDAQ stock exchange:

Through a Russian licensed broker. These include Sberbank, VTB, BCS, Otkritie, etc.
If you are placing only shares and do not have the status of a qualified investor, you can place your securities through the St. Petersburg Exchange, in which the NASDAQ exchange owns a share. Confirmation of status is required to list an ETF.
Through foreign subsidiaries of Russian brokers. There is one nuance here: an extra intermediate link appears in the form of partners of such companies abroad, which increases the time for withdrawing funds.
Through an American broker, for example, Interactive Brokers, where there is Russian support, or Just2Trade.

The listing procedure takes 4-6 weeks and includes the following steps:

consideration of the application by the commission;
drawing up a review letter with a list of errors to be eliminated and sending a verdict;
error correction;
consideration of a new application.

Links[edit]

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"Nasdaq Nordic and Nasdaq Clearing appoint new board members". NASDAQ. July 12, 2021 Archived from the original on September 14, 2021. Retrieved August 11 +2016.
Bakie, John (October 30, 2014). "Nasdaq is removing the OMX name from its brand". Trade
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Nasdaq AB. Solidinfo.se
(in Swedish). Archived from the original on August 26, 2021. Retrieved August 11 +2016.
https://www.securitiesindustry.com/news/22064-1.html [ permanent dead link
] Article on Nasdaq OMX acquisition
^ a b c
"Milestones". NASDAQ OMX Group. Archived from the original on August 26, 2010. Retrieved September 28, 2010.
Treanora, Jill (December 10, 2002). "Stock exchange merges with OM". The keeper
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"OM Losses Shock Analysts". BBC News
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"City Briefing: Jiway eases stock exchange chaos". The keeper
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Jump up
↑ Leighton-Jones, Phillipa (September 4, 2003).
"OMHex Appoints New Chief Executive as Trading Begins". Financial news
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"OMHEX changes name to OMX". Finextra
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Akerhielm, Maria (November 16, 2004). "OMX to buy Copenhagen Exchange". Dow Jones Newswires
. Archived from the original on March 10, 2021. Source +29 February 2008.
"OMX to buy Icelandic exchange owner in all share deals". AFX News
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September 19, 2006. Source +29 February 2008.[ dead link
]
"Top 20 Shareholders". Oslo Bors VPS. Archived from the original on September 23, 2016. Retrieved September 2, 2021.
"About Oslo Børs VPS". Oslo Bors VPS. Archived from the original on August 31, 2016. Retrieved September 2, 2021.
"Nasdaq interested in Oslo Bors, but feeling Norwegian chill". Reuters. March 31, 2021. Archived from the original on September 15, 2021. Retrieved September 2, 2021.
"OMX - press release". Cision Wire. Archived from the original on July 16, 2009. Retrieved November 21, 2007.
"OMX: North's first services expand to Finland". Business wire
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“OMX Nordic Exchange strengthens its position as Europe's leading trading platform” (press release). OMX. October 2, 2006. Source +29 February 2008.
"Nasdaq Offers $3.7 Billion for Nordic OMX". BBC News
. May 25, 2007. Archived from the original on October 4, 2007. Source +29 February 2008.
"Dubai in $4 billion bid for Nordic OMX". BBC News
. August 17, 2007. Archived from the original on November 23, 2008. Source +29 February 2008.
Magnusson, Niklas; McSheehy, Will (20 September 2007). “Dubai will buy shares in Nasdaq, LSE; makes deal with OMX." Bloomberg
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"Borse Dubai completes planned sale of OMX to Nasdaq". International Herald Tribune
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Types of NASDAQ indices

As we already know, NASDAQ is a whole family of indices. Most companies specialize in technology. All NASDAQ indices are calculated by determining the weighted average price of shares. Let's look at the main types.

NASDAQ Composite (COMP)

This index includes more than 100 of the largest technology companies in the IT sector, which are growing at a rapid pace. The NASDAQ Composite also includes growing companies. The total number of participants exceeds 3000.

Example of investing in NASDAQ indexes

In my opinion, a fairly simple solution for a novice investor would be the NASDAQ-100 index. Why him? Yes, because this index includes the largest world-famous companies. To minimize risks, it is advisable to diversify the portfolio by including shares of both American and other foreign participants. If you do not have the status of a qualified investor, you can work through the St. Petersburg Exchange, as mentioned above.

Peloton Interactive

Peloton Interactive became the leader of this group, its shares increased almost 5-fold in 2020. The maker of home interactive exercise equipment has resonated with fitness fans for a while, but the COVID-19 pandemic has significantly increased demand for its exercise bikes and treadmills. The company is now in the enviable position of having more interested customers than it can keep up with in terms of supply capacity.

Some worry that recent moves by major rivals like Apple to duplicate their line of interactive fitness content could narrow Peloton's lead. But Peloton knows its first-mover advantage and is doing everything it can to maximize the value of its platform for subscribers—both those who currently own Peloton hardware and those who only use its app. This bodes well for Peloton's sustainability even after the pandemic is brought under control.

NASDAQ - stock exchange and indices (National Association of Securities Dealers Automated Quotation)