Stock Market Today

Not surprisingly, the Nasdaq Composite tracks

all of the stocks listed on the Nasdaq exchange . The index dates back to 1971, which is when the Nasdaq exchange was first formalized. The index is used mainly to track technology stocks, and thus it is not a good indicator of the market as a whole. Unlike the Dow, the Nasdaq is market capitalization-weighted, so it takes into account the total market value of the companies it tracks and not just their prices. Since the index tracks all of the 5000+ stocks listed on the Nasdaq, it includes more than just a representative sample of the technology industry. Critics charge, however, that the index tracks too many small companies whose performance increases the index’s volatility.