Along with the Dow Jones Industrial Average and S&P 500, it is one of the three most-followed stock market indices in the United States.
[7] To be eligible for inclusion in the Nasdaq Composite, a security's U.S. listing must be exclusively on the Nasdaq stock market unless the security was dually listed on another U.S. market prior to 2004 and has continuously maintained such listing, and must be one of the following security types:[3] Closed-end funds, convertible bonds, exchange-traded funds, preferred stocks, rights, warrants, units and other derivatives are not included in the index.
[8] Between 1995 and 2000, the peak of the dot-com bubble, the Nasdaq Composite stock market index rose 400%.
[11] The index declined to half its value within a year, and finally hit the bottom of the bear market trend on October 10, 2002, with an intra-day low of 1,108.49.
[13] On September 15, 2008, bankruptcy of Lehman Brothers led to a 3.6% drop in the index, its worst single-session percentage decline since March 24, 2003.
Although it still stood almost 20% below its all-time highs, the index set a new record annual close of 4,176.59 on December 31, 2013.
[23] On August 6, 2020, the index reached a new all-time high above 11,000[24] and managed to close for the year at 12,888 points.
[26] [27][28] In 2022, the index plunged through the beginning of the year with it reaching an intraday low on June 16 at 10,565.14.