What is the NASDAQ and what stocks are listed on it?
First of all, let's do a little reminder about the NASDAQ and its stock index of the same name. The NASDAQ, whose name stands for National Association of Securities Dealers Automated Quotations, is the second largest market in the United States and is positioned just after the NYSE. It is also the world's largest electronic stock trading venue.
The NASDAQ market has its own stock index, the NASDAQ 100, which is made up of the 100 companies, as its name suggests. As with most stock market indices, the stocks on the NASDAQ are those with the largest total capitalizations. Some of the most popular stocks in this stock index and financial center of the NASDAQ include the big technology stocks including Netflix, Google, Amazon, Apple and many others.
What are the different ways to buy Nasdaq listed shares?
Of course, it is still possible to buy shares of NASDAQ-listed companies through traditional investment products such as securities accounts, when the funds include foreign stocks. Unfortunately, these funds are relatively rare and often expensive for European investors.
But for some years now, there has been another way to invest in American stocks and thus in NASDAQ shares. Indeed, it is enough to join the online trading through brokers who offer specific contracts to speculate on the rise or fall of the price of these stocks online.
These contracts are called Contracts for Difference or CFDs and do not require you to actually buy shares. The principle here is to take an up or down position on Nasdaq stocks and the gain or loss will be the difference in price of the stock concerned between the time the position is opened and the time it is closed.
It is important to note here that these platforms also allow you to speculate directly on the price of the NASDAQ stock index, according to the same principle, and not only on the price of the shares that make it up.
Some examples of stocks you can trade on the NASDAQ:
As mentioned above, the NASDAQ stock index consists of many shares of very large, globally known companies whose stocks are therefore particularly popular.
For example, you can trade the Apple stock, which is currently the second most traded stock in this index and whose issuer specializes in the design and manufacture of mobile communication devices.
You can also trade the Facebook stock, which is also one of the most popular at the moment, or the shares of large technology groups such as Amazon or Google.
What indicators should I follow to take a position on the NASDAQ?
As you may already know, the NASDAQ is a stock market index that tends to reflect the activity of companies in the technology sector on the stock market. So if you want to trade it or some of its stocks, you'll need to take a closer look at technology and advances in it.
If you are speculating on one or more NASDAQ stocks, you will also need to conduct accurate analyses of these companies, taking into account various environmental, competitive, financial and strategic factors, which will help you assess how the company may progress in the years to come. Don't forget to use technical analysis and stock charts to assess the strength and volatility of the market and confirm or deny your predictions.
Finally, if you are trading directly on the NASDAQ, there will be a wider range of factors to consider, including global economic data, geo-political conflicts and regulations.