The term NASDAQ Global Select Market Composite refers to a stock market index created by NASDAQ, a global financial technology, trading and information services provider. The NASDAQ Global Select Market Composite is comprised of 1,200 companies passing the highest quality standards established by the NASDAQ.
The NASDAQ Global Select Market index is a portfolio of 1,200 securities issued by companies that meet the exchange's highest tier of standards for financial and liquidity strength. While corporate governance requirements are the same across all three market tiers, companies that do not have the financial strength to pass these standards are included in NASDAQ's Global Market and Capital Market tiers.
The composite carries forward the performance of the NASDAQ National Market Composite Index, which began on July 10, 1984 and was replaced by the NASDAQ Global Select Market Composite Index. Performance of the composite is calculated based on market capitalization weights, 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. The performance of the index can be tracked using the stock ticker NQGS. There are approximately 1,450 components in the index, since a company may have issued multiple securities eligible for inclusion in the composite.