Stands for National Association of Securities Dealer Automated Quotations.
Composed of all the stocks on the Nasdaq market – more than 5,000.
It is the main benchmark index for U.S. technology stocks.
Largest electronic equities exchange in the U.S.
We have already touched on two of the major indexes: the S&P 500 and the Dow Jones Industrial Average. Now it is time to tackle another popular index: theNasdaq. The Nasdaq is short for the National Association of Securities Dealer Automated Quotations, which doesn’t exactly roll off the tongue. So they shortened it to NASDAQ.
A dividend is cold, hard cash some companies pay out to their shareholders.
Mature companies that make steady profits are more likely to pay dividends.
The way most people think of making money in the stock market is by buying low and selling high. For certain stocks, you can also make money just by holding the stock. These are called dividend stocks.
Using a dividend to buy more of that stock is called “dividend reinvestment.”
When you do this, you end up with more shares of stock instead of cash.
If a company issues a cash dividend, it will normally show up as cold, hard cash in your brokerage account. At some brokerages, you can buy more stock with the dividend for free so that you own more shares instead of holding extra cash.