Nasdaq definition

One of the largest stock exchanges in the world, known for being home to big tech companies like Apple, Microsoft, Amazon, and Tesla.

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What is the Nasdaq?

The Nasdaq is one of the largest stock exchanges in the world, based in the US. It’s known for being home to many of the biggest tech companies, including Apple, Microsoft, Amazon, and Tesla.

There are two key things to know about Nasdaq:

  1. It’s an exchange: like the New York Stock Exchange (NYSE), it’s a marketplace where stocks are bought and sold, but it operates electronically rather than on a physical trading floor.
  2. It has its own stock indices: the most well-known is the Nasdaq Composite, which tracks thousands of companies, and the Nasdaq-100, which focuses on the 100 largest non-financial firms.

Because the Nasdaq is tech-heavy, its performance is often seen as a measure of how the tech industry – and the broader economy, particularly in the US – is doing.

Investing glossary

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It's important you know

Capital at risk. All investing should be for the longer term. The value of your investments can go up and down, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.

A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Payments you make into your pension won’t be accessible until the minimum pension age (currently 55, increasing to age 57 from 2028). Tax treatment depends on individual circumstances and may be subject to change in the future.

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