NASDAQ Global Market Composite

What Is the NASDAQ Global Market Composite?

The NASDAQ Global Market Composite is an international stock market index including 1,450 stocks that address the NASDAQ Global Market. Stocks in this index must meet NASDAQ's severe corporate governance standards and financial and liquidity requirements. The Global Market Composite is less exclusive than the Global Select Market Composite.

Grasping the NASDAQ Global Market Composite

The NASDAQ Global Market Composite stock market index was laid out by NASDAQ in 2006 when the Nasdaq National Market split into two tiers, the Nasdaq Global Market and the Nasdaq Global Select Market. It centers around companies that don't have the financial strength to be remembered for the NASDAQ Global Select Market Composite. The Global Market Composite is less exclusive than the Global Select Market Composite.

This change by NASDAQ was nominal, as it didn't influence listing standards or adjust the corporate governance standards and financial and liquidity requirements. The split was intended to mirror the global scope of the index and the companies listed on it.

The NASDAQ Tiers

The NASDAQ had three distinct tiers:

1. The NASDAQ Global Select Market (NQGS)
2. The NASDAQ Global Market
3. The NASDAQ Capital Market

Requirements for inclusion in the NASDAQ Global Select Market are the most tough, and requirements for the NASDAQ Global Market are more severe than those for the NASDAQ Capital Market.

Corporate governance requirements are something very similar across all NASDAQ market tiers. All companies listed by NASDAQ must fulfill an assortment of financial, liquidity, and corporate governance requirements, and keeping in mind that an organization's securities might fit the bill for initial inclusion, NASDAQ might deny a listing when fundamental, to safeguard investors and the public interest.

The performance of all NASDAQ tiers depends on market capitalization loads. Thus, the movement of common stocks of bigger companies greaterly affects the movement of each index as a whole.

The NASDAQ Global Select Market Composite

The NASDAQ Global Select Market index is a portfolio of securities issued by companies that satisfy the highest guidelines for financial and liquidity strength. The beginning point of the NASDAQ Global Select Market Composite was the NASDAQ National Market Composite Index, which started in 1984 and was eventually supplanted by the NASDAQ Global Select Market Composite Index.

The NASDAQ Global Market Index

The NASDAQ Global Market Index is a portfolio of securities issued by companies that satisfy the NASDAQ guidelines for financial strength and liquidity. Companies that don't have the financial strength to be remembered for NASDAQ's Global Select Market Composite are remembered for NASDAQ's Global Market.

The NASDAQ Capital Market Composite

The NASDAQ Capital Market Index is a portfolio of securities issued by small-cap companies trading on NASDAQ. Nominally, these are smaller companies that show a need to raise extra capital. The listing requirements for the NASDAQ Capital Market are less severe than the other NASDAQ markets.

Features

• The NASDAQ Global Market Composite is an international equity index containing 1,450 stocks in the NASDAQ Global Market.
• The Global Select Market contrasts from the Global Market in that it is more exclusive and must meet more severe financial and liquidity requirements.
• The Composite is made out of three distinct tiers: The NASDAQ Global Select Market, the NASDAQ Global Market, and the NASDAQ Capital Market.
• Companies in the Capital Market tier meet less severe requirements and have lower levels of market capitalization compared to the next two tiers.