The most prominent indices in the stock trading sector globally are the Nasdaq (US100). Most investors and financial analysts bank on this stock index along with the industrial Dow Jones (US30) and S&P (US500) indices. It plays a crucial role in showing the investor sentiment by the proper forecast of all the technological companies. Since technology is a booming sector, many young companies developing dynamically can get an opportunity to be listed in the top 100 tech-based companies in the US market.
Nasdaq is a highly volatile stock index and involves massive fluctuations, unlike the other indices. The reason for a highly volatile index is because of the companies that join it with high-risk shares and Speculative capital. The capital or funds which involve a high probability of risk or loss with an intention of speculation is called Speculative capital. The fluctuation and the dynamics are mainly caused due to the evolution and widespread impact of technological progress on different continents. Although Nasdaq stock trading is known for its risky nature it is extremely popular worldwide.
What is the NASDAQ index?
Nasdaq is one of the largest stock exchanges in the world and enjoys second place after the New York Stock Exchange (NYSE). The key players are big giants in the technology market like Google, Apple, Amazon, and Microsoft which are listed in the exchange. The stock exchange commenced in 1971 and has more than 4000 companies listed in it including the major corporations in the world. The valuation of the companies listed here changes or fluctuates depending on the world economy. Being the first one to start stock trading through an electronic platform it attracted many investors as it opened doors of flexibility and feasibility. Earlier the traders used to complete the process on the physical trading floor in New York Stock Exchange which had its own limitations as opposed to Nasdaq. It gained prestige and a high reputation because of its innovation which attracts many new and big companies to join.
How to Use NASDAQ (US100)?
Nasdaq offers an excellent opportunity for buying and selling shares and allows the users to utilize the benefits of the market volatility. there is a high potential for leveraging the profits with day traders even in risky conditions.
1. Nasdaq stock investments
Stock investments have become easier and simpler with direct investments through company platforms. It helps the investors to directly invest in the best technology companies. You need to open a US brokerage account. Many online services are allowing stock trading at users’ convenience. Additionally, any foreign brokerage with its footprint overseas can help in trading. The online services help the investors through paperless and hassle-free processing.
2. US ETF investments
Another common way is by an exchange-traded fund (ETF) which is a pool of stocks and bonds similar to mutual funds. This is a cheaper option for companies to trade through real-time pricing. Even the ETFs can be bought on any of the online platforms, the big giants of technology like Apple, Google, etc are also in the ETF.
3. International mutual funds investments
Here the investor gets to invest in local mutual funds which invest in the US mutual funds on the Nasdaq. Due to foreign currency, there will be no investment limit here but it may come across to be expensive as the annual expense ratio which manages the funds is high. Additionally, in case the investor selects a fund that does not come under fund or funds the expense ratio is more than 2%.
In simple terminology Nasdaq is a marketplace where investors and companies can participate in buying and selling their stocks electronically. The acronym stands for “National Association of Securities Dealers Automated Quotations”. It is responsible for operating 29 markets, five central securities depositories, and one clearinghouse in the United States and Europe. It is one of the best ways to learn about the current best-performing technology giants worldwide.
