Difference between Dow Jones and NASDAQ
Millions of people are engaged in the world’s stock markets today. Most people believe it is their right to ‘grow’ their retirement money and other money. Truth is, the safest way to earn extra cash is through safe interest bearing accounts but the past decades have shown that a lot of money is there to be made in stock marketing and with this comes risk. Stock market players work in synergistic rhythm to keep up with each other in these games of chance and rely, in one way or another, on the NASDAQ and Dow Jones. These two companies have become intrinsic to buying and selling stocks. Each company has a very intelligent and dedicated team, combining their efforts in order to make the best out of each and every investment everyday.
Who are They?
NASDAQ is an American Stock Exchange market which has an average of 3,700 corporations and companies under its umbrella. These numbers prove that they are the largest when it comes to trading volumes all over the world. The acronym NASDAQ which stands for National Association of Securities Dealers Automated Quotations is the biggest in the United States when it comes to electronic screen-based equity securities trading.
Charles Dow, the co-founder of the Dow Jones & Company, and the editor of Wall Street Journal is the one who established the Dow Jones Industrial Average or simply Dow Jones. This index shows how these 30 publicly owned, large companies which are based in the Untied States have performed during a normal trading session in the stock market. Dow Jones is the second oldest following another creation of Dow the Dow Jones Transportation Average when it comes to the market index.
How it Works
The NASDAQ found its way into the stock market world with the help of its giant electronic screen showing the activities of not just 30 companies but more than 3,000 US companies. What is best about NASDAQ is that it includes technology based companies like Dell, Amazon.com and Microsoft. The Dow Jones Industrial Average (DJIA) on the other hand concentrates only on 30 publicly owned corporations. But these companies are the major players in the market, which usually determines the majority of the condition of the stock market so it would be very hard to imagine that this index will go away anytime soon.
Composite Index
When it comes to composite index, the NASDAQ is the winner with a lower composite index when compared to that of the Dow Jones Industrial Average. Even with NASDAQ’s greatest technological downfall in 2002 with the introduction of the dot.net language in the system, they have still managed to keep themselves alive over the past few rocky years.
Summary
- NASDAQ is the largest electronic screen based equities security trading. It covers more than 3,000 companies in the United States including tech companies like Dell, Amazon and Microsoft.
- Dow Jones Industrial Average (DJIA) is the pioneer when it comes to market index. It studies and keeps track of 30 major publicly owned companies in the United States which greatly dictates the performance of the daily stock market.
- NASDAQ, even with its downfall in 2002 continued to rise and still became the lowest composite index compared to the Dow Jones Industrial Average.
