The Nasdaq Composite Index IXIC is a stock market index that includes almost all stocks listed on the Nasdaq stock exchange. It is one of the most widely followed stock market indices in the world and is often used as a benchmark for the performance of the technology sector.
The IXIC was created in 1971, and its inception coincided with the rise of the personal computer and the internet. As these industries grew, so did the IXIC, and it quickly became one of the most important stock market indices in the world.
Today, the IXIC is a bellwether for the technology sector, and its performance is closely watched by investors around the world. In this article, we will take a closer look at the IXIC, including its history, composition, and how to invest in it.
History of the IXIC
The Nasdaq Composite Index was created in 1971 by the National Association of Securities Dealers (NASD), which was the predecessor to the Nasdaq stock exchange. The index was initially designed to track the performance of the over-the-counter (OTC) securities market, which was where many technology stocks were traded at the time.
In 1985, the NASD began listing stocks on the Nasdaq stock exchange, and the IXIC was expanded to include these stocks. As the technology sector grew, so did the IXIC, and by the early 2000s, it was one of the most widely followed stock market indices in the world.
Composition of the IXIC
The IXIC is a price-weighted index, which means that the price of each stock in the index is multiplied by its weighting to determine the index’s overall value. The weightings of the stocks in the IXIC are based on their market capitalization, which is the total value of all of the shares of a company that is outstanding.
The IXIC currently includes more than 2,500 stocks, and its largest components are Apple, Microsoft, Amazon, Alphabet, and Tesla. These five stocks make up more than 20% of the index’s value.
How to Invest in the IXIC
There are a number of ways to invest in the IXIC. One way is to buy shares of an index fund that tracks the index. Index funds are a type of mutual fund that invests in a basket of stocks that are designed to track the performance of a particular index.
Another way to invest in the IXIC is to buy shares of individual stocks that are included in the index. However, this can be a risky strategy, as the performance of individual stocks can vary significantly.
A third way to invest in the IXIC is to buy call options on the index. Call options give the buyer the right to buy shares of the index at a predetermined price on or before a specified date. This can be a way to profit from the rising prices of the index.
The Nasdaq Composite Index (IXIC) is a valuable tool for investors who want to track the performance of the technology sector. The index is also a good way to invest in the technology sector, as there are a number of different ways to do so.