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NASDAQ Capital Market Composite

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
September 20th, 2023
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Definition

The term NASDAQ Capital Market Composite refers to a stock market index created by NASDAQ, a global financial technology, trading and information services provider. The NASDAQ Capital Market Composite is comprised of companies with relatively small levels of market capitalization.

Explanation

Formerly known as the NASDAQ SmallCap Market, the NASDAQ Capital Market Index is a portfolio of securities issued by small cap companies trading on the NASDAQ stock exchange. The listing requirements for the NASDAQ Capital Market are less stringent than the other NASDAQ markets. The name reflects the need for these companies to raise additional capital.

While corporate governance requirements are the same across all three market tiers, the financial and liquidity requirements for the NASDAQ Capital Market is less stringent than those for the NASDAQ Global Select Market and the NASDAQ Global Market.

The NASDAQ Capital Market Composite Index is a market capitalization weighted index, which means the movement of common stocks of larger companies in the index, in terms of market capitalization, has a greater impact on the movement of the index. It is a measure of all the domestic and international common stock for the companies listed on the NASDAQ Capital Market tier. Performance of the measure can be tracked using the stock ticker RCMP.

Related Terms

buying the index, NASDAQ 100 Index, NASDAQ Financial-100 Index, NASDAQ Computer Index, NASDAQ Composite, S&P 500 Index

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