Glossary · Defined term
Nasdaq
Nasdaq is a major U.S. electronic stock exchange known for technology listings, and the name of its flagship index.
Last updated Oct 2, 2026
What it means
Nasdaq is a major U.S. stock exchange known for listing technology and growth companies, and also the name of its flagship index, the Nasdaq Composite. Founded in 1971 as the first electronic stock market, Nasdaq has no physical trading floor; competing dealers called market makers quote prices over computer networks. Its listings include many of the world's largest technology firms, which is why the exchange is often treated as a barometer for the tech sector. The Nasdaq-100 index tracks the 100 largest non-financial companies listed on the exchange. Like the NYSE, Nasdaq sets listing standards and oversees trading in its listed securities.
An example
For illustration, when headlines say the Nasdaq rose 2 percent, they usually mean the Nasdaq Composite index, a basket of thousands of listed stocks, climbed that day. A company listed on Nasdaq separately means its shares trade on that exchange's electronic market. The same name covers both the marketplace and the index.