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2007-11-14 21:11:38 · 6 answers · asked by Anonymous in Business & Finance Investing

6 answers

"Dow" and "Nasdaq," both terms have become synonymous with "the market," giving people a hazy idea of what each term actually means. In this question, "the Dow" refers to the famous figure that peppers almost all business news reports, The Nasdaq is also a term that can refer to two different things: first, it is the National Association of Securities Dealers Automated Quotations System, which is the first electronic exchange, where investors can buy and sell stock. Second, when you hear people say that the "the Nasdaq is up today," they are referring to the Nasdaq Composite Index, which, like the DJIA, is a statistical measure of a portion of the market.
Both the Dow and the Nasdaq, then, refer to an index, or an average of a bunch of numbers derived from the price movements of certain stocks

2007-11-14 21:15:19 · answer #1 · answered by Anonymous · 0 0

The "Dow" refers to the Dow Jones Industrial Index. It is the total value of the 30 biggest companies (which changes from time to time) on the NYSE (New York Stock Exchange).

The NASDAQ is simply another exchange, like the NYSE. It started with mostly tech stocks, though these days includes companies from many different sectors.

There's also a 3rd exchange in the US, called AMEX. Generally speaking, the Dow/NYSE gives you an idea of the health of the largest businesses in the US ("large cap"), and the NASDAQ and AMEX gives you an idea of the health of the smaller businesses ("mid-cap" and "smal cap" stocks).

There are also other indexes & exchanges to watch, if one is more globally-minded. FTSE is London's, CAAC is France, DAX is Germany, SMI is Swiss, NIKKEI is Japan, Heng Sang is Hong Kong. You can also trade the health of most markets/countries, rather than individual stocks, by the way...this is called ETFs (or Exchange Traded Funds).

2007-11-14 23:32:02 · answer #2 · answered by Black Knight 2 · 0 0

The NASDAQ has around 500 stocks in it where the DOW has 30.
The Dow thus moves more rapidly since it is not spread as wide in companies.

2007-11-14 21:20:26 · answer #3 · answered by Anonymous · 0 0

Keep in mind that the differences between the two are quickly disappearing. At some point, there will be virtually no differences. NYSE will certainly lose its open outcry system in the not-too-distant future...the rest of the world has already gone that route. Both exchanges have their own ECNs (electronic communication networks) that handle a huge portion of trading volume. Both exchanges have companies tiny and huge trading on them, though Nasdaq is traditionally considered the "small company" exchange. Keep in mind, though, that companies such as Microsoft and Intel trade on Nasdaq. In this day in age, though, one can trade just about anything in about a dozen different places. Gone are the days when a security (stock, futures contract, etc.) traded in just one place. Remember that both NYSE and Nasdaq are now public companies and seeking profit (by way of listing fees and real-time data dissemination) just like any other business out there. I hope this helps...

2016-05-23 06:08:49 · answer #4 · answered by lara 3 · 0 0

nasdaq is tech stocks only and the dow is an index of a variety of industrial stocks.

2007-11-14 21:15:41 · answer #5 · answered by doug4jets 7 · 0 0

SIR,IT IS A DIFFERENCE LIKE BETWEEN YOU & ME !!!!

2007-11-14 21:17:17 · answer #6 · answered by parekhs_carewel 3 · 0 3

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