The Nasdaq-100 Index is designed to track the performance of a market consisting of the 100 largest and most actively traded non-financial domestic and international securities listed on The Nasdaq exchange, based on market capitalization. To be included in the Index, a stock must have a minimum average daily trading volume of 100,000 shares. And must have traded on the NASDAQ exchange or another listed exchange for at least 2 years.
The Nasdaq 100 index is a modified capitalization-weighted index. This is a hybrid between capitalization weighting and equal weighting. It is similar to a capitalization weighting with one main difference: the largest stocks are capped to a percent of the weight of the total stock index and the excess weight is redistributed equally among the remaining stocks in the index.
The Dow Jones Industrial Average is an index of 30 “blue chip” stocks of U.S. “industrial” companies. The Index includes large industrial companies with a history of successful growth and investor interest. The Index includes a wide range of companies—from financial services companies, to computer companies, to retail companies—but does not include any transportation or utility companies, which are included in separate indexes.
The stocks included in the DJIA are not changed often and unlike other major indexes, the Dow Jones industrial average is not a “weighted” index, the Index does not take market capitalization into account.
The sp 400 index serves as a measurement for the U.S. mid-cap equities sector and is the most widely followed mid-cap index. To be included in the index, a stock must have a total market capitalization that ranges from roughly $250 million to $10 billion dollars. Stocks in this index represent household names from all major industries including manufacturing, technology, energy, financial and healthcare. The index covers over 7 percent of the U.S. equity market and remains an accurate measure of midsized companies.
Like many other stock market indexes, the S&P 400 Midcap Index is a capitalization weighted index, meaning that the stocks with the largest market capitalization have the most significant impact on the movement of the index. Similarly to other weighted indexes, movements in the smallest companies in the index have virtually no effect on the overall movement of the index.
The Russell 2000 Index was created in 1984 by Frank Russell and was intended to measure the performance of the smallest 2,000 companies that make up the Russell 3000, the index that measures the 3,000 largest publicly traded companies in the Unites States.