The Nasdaq 100 Index (NDX) is a stock market index that includes the 100 largest, most actively traded companies listed on the Nasdaq stock exchange. The index is designed to represent the overall performance of companies in the technology and biotech sectors, and is widely considered to be a benchmark for the overall health of the technology sector.The Nasdaq 100 Index is weighted by market capitalization, meaning that the larger the market capitalization of a company, the more heavily it is weighted in the index. This means that the index is heavily influenced by the performance of the largest companies in the index, such as Apple, Microsoft and Amazon.The Nasdaq 100 Index is traded through various financial instruments, such as exchange-traded funds (ETFs) and futures contracts. These financial instruments allow investors to gain exposure to the performance of the index, without having to directly purchase the individual stocks that make up the index.Some of the key characteristics of the Nasdaq 100 Index are: -• Market Capitalization Weighted: The index is weighted by market capitalization, which means that the larger the market capitalization of a company, the more heavily it is weighted in the index.• Technology and Biotech Focus: The index is designed to represent the overall performance of companies in the technology and biotech sectors.• Constituents: The index is composed of the 100 largest, most actively traded companies listed on the Nasdaq stock exchange.• Trading: The Nasdaq 100 Index is traded through various financial instruments, such as ETFs and futures contracts.In summary, the Nasdaq 100 Index is a stock market index that includes the 100 largest, most actively traded companies listed on the Nasdaq stock exchange. It is designed to represent the overall performance of companies in the technology and biotech sectors, and is widely considered to be a benchmark for the overall health of the technology sector. The index is weighted by market capitalization, which means that the larger the market capitalization of a company, the more heavily it is weighted in the index. It is traded through various financial instruments, such as ETFs and futures contracts.
