What does the number in the stockmarket mean(ex. nasdaq^12)?
Answer:
The NASDAQ is both a stock market and an index of stocks traded on that stock market. People refer to the NASDAQ index being up 15 when all of the stocks in the index, totalled up, are worth $15 more today than yesterday. (Some went up, some probably went down, but the total is up.) The total is weighted by market capitalization -- that is, bigger companies are weighted more than smaller ones in the index.
The Nasdaq is a basket of stocks (100 stocks) that trade on the Nasdaq. This basket is an index that represent these stocks. Throughout the trading day, these stocks rise and fall. The number reflects how well the index did. Just as the DJIA represents 30 stocks of the major industries
Unfortunately, these indices are typically weighted. It is not dollar for dollar. This takes into account for forward and reverse splits and an algorithm that you would have to read to understand.
BTW, Nasdaq typically trades as the ticker QQQ which is an ETF and a.k.a. triple q's. All stocks that trade on the Nasdaq have tickers with four or five letters. The NYSE has one, two, or three letters. Nasdaq stands for North American Security Dealers and Quotations.
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