Nasdaq launched the Nasdaq Composite index in 1971, when the electronic market began operations.
The index was created to track all common stocks and similar securities listed on the Nasdaq market. Because Nasdaq lists many technology and growth companies, the Composite became widely associated with the U.S. technology sector, although it contains companies from many industries.
Nasdaq began as an automated quotation system created by the National Association of Securities Dealers. It was initially a quotation service rather than a traditional exchange with a physical trading floor. Over time, its systems developed into a major electronic stock market.
The Nasdaq Composite is different from the Nasdaq-100. The Composite covers thousands of Nasdaq-listed securities, while the Nasdaq-100 tracks 100 of the largest non-financial companies listed on Nasdaq.