Terms Beginning With 'c'

Cloud Computing

Cloud computing is the distribution of a range of computing services via the internet. The computing services include servers, storage, databases, networking, software, and analytics, among others. Cloud computing is an extremely popular and widely used technology. Some of the major players in the industry include Amazon Web Services, Microsoft Azure, Google Cloud, and IBM Cloud.

The best part of using cloud computing services is that it is helpful in reducing the operating cost. At the same time, it is swift, provides flexible resources and offers the advantage of economies of scale.

Cloud Computing

What is Cloud Computing?

Cloud computing is the distribution of a range of computing services via the internet. The computing services include servers, storage, databases, networking, software, and analytics, among others. Cloud computing is an extremely popular and widely used technology. Some of the major players in the industry include Amazon Web Services, Microsoft Azure, Google Cloud, and IBM Cloud.

The best part of using cloud computing services is that it is helpful in reducing the operating cost. At the same time, it is swift, provides flexible resources and offers the advantage of economies of scale.

As highlighted in the image above, through cloud computing, it is possible to read a newspaper, do net banking, read books, save files and many more.

After having some idea about cloud computing, let us also understand some of the benefits of cloud computing.

GOOD READ: 3 Stocks to Leverage the Cloud Computing Boom in 2020

What are the Benefits of Cloud Computing?

Cloud computing can be considered as a significant transition from the traditional working style. Below are some of the reasons why most companies are switching to the cloud.

Reduces Operating Cost:

One of the major advantages of cloud computing is that it saves a lot of money. People do not have to worry about purchasing hardware to save any file. Different software is also available through the cloud. Thus, it reduces additional cost purchasing software.

Cloud Computing is highly elastic:

Probably the biggest advantage of cloud computing is its elasticity. In essence, it means providing the required computing power, storage, and bandwidth at any point of time from any geographical location.

Supports Business Continuity:

Cloud computing has a critical role to play at the time of any disaster. For any business, protecting data and system is critical during a BCP (business continuity plan) situation. Whatever be the situation, with cloud computing, one can be sure that their data are safe and secure.

Supports Collaboration Within Organization:

When the resources are available on the cloud, the employee would be able to access the files, communicate with each other, even while sitting at different corners of the world.

Automatic Updates:

Users of cloud computing services usually receive automatic updates related to the software. In case one has a software on one’s device connected to the cloud, and there is an update on the software, one would also be eligible for automatic software upgrade depending on the software fees.

Security:

Various cloud providers are offering a set of policies, technologies, and controls capable of strengthening the security of your data, files, applications, plus an infrastructure to safeguard from external threat.

How Many Types of Cloud Computing are there?

There are different types of clouds catering to varying needs of the end-users. There are several models, solutions, types, and services that have grown with time and that match the specific needs of the user.

Let us discuss the three types of cloud computing.

Public Cloud:

Public clouds are owned and controlled by third-party cloud service players. These providers offer services like servers and storage over the internet. An example of Public cloud is Microsoft Azure. With the public cloud, the entire hardware, software, and other supporting infrastructure are owned by the cloud provider. The services on the public cloud can be accessed via a web browser.

Private Cloud:

In a private cloud, the resources on the cloud can be accessed entirely by a single company. This private cloud could be situated on the company’s on-site data center. In some cases, these companies provide third-party service providers to manage their private cloud.

Hybrid Cloud:

Hybrid cloud, as the name indicates, is the amalgamation of both the private and public cloud. In Hybrid cloud, the two are bound together via a technology that enables data and applications to be shared. With data free to move between the two clouds, there exists more flexibility within the business and more deployment options, thus, helping to optimize the prevailing infrastructure, security, and compliance.

 

What are the different types of Cloud Computing Models?

Cloud computing has three types of models. Each model signifies a different component of the cloud computing stack.

Infrastructure as a Service (IaaS):

Infrastructure as a Service comprises of the basic building blocks for cloud IT, and it gives access to network features, computer, and data storage spaces. This cloud model provides its user with the highest level of elasticity and management control over the IT resources. 

Platform as a Service (PaaS):

Platform as a Service model eliminates the need for a company to manage the underlying infrastructure. It supports its users to concentrate on the implementation as well as the management of their applications. The advantage of using this model is that the user need not have to think about purchasing any resource, capacity planning, software maintenance that is needed to run the application.

Software as a Service (SaaS):

Software as a service model gives the user a complete product that is operated and managed by the service provider. In most cases, people refer to SaaS as an end-user application. Through this SaaS model, the user gets relieved from the tension of maintaining the service and management of underlying infrastructure. The SaaS user only has to think about different ways to use a particular application. An example of SaaS is an email one sends to another person without worrying about how the application is operating at the back-end.

Cloud Computing Outlook

Cloud computing has massive scope for the future. Its role was significant during the pandemic when most people switched to remote working. Market experts believe that cloud computing will grow at a considerable pace. According to some research reports, the cloud computing market is expected to grow at a CAGR in the late teens and exceed US$800 million in size by 2025.

Existing Market Dynamics:

  • Improved return on investment at a lower infrastructure and storage cost.
  • Existing requirement to handle regulatory and compliance policy needs.
  • Increase in the adoption of hybrid cloud service.
  • Cloud computing experiences challenges of cyber-attacks impacting businesses.

INTERESTING READ: 5G, Cloud Computing, Bundling – the three pieces of pie in Australian Telecom

Uses of Cloud Computing

Most things have gone online in the present times, and people are using online mode to watch movies, play games, listen to music, and many more. This is possible because of cloud computing. From the smallest companies to the biggest in the world, all are utilizing this technology for several purposes. In this section, we would look at a couple of applications of cloud computing.

  • Cloud is used for building, deploying, and scaling applications at a faster rate.
  • Cloud is used to reduce the application cost and time via cloud infrastructures that can be easily scaled up or down as per the requirement.
  • Through cloud computing, a user can protect data in a cost-effective way and on a massive scale. It also transfers the data to an offsite cloud storage system that can be assessed from any place and device.
  • Cloud is used for consolidating data across teams, units, and locations. Different people can then assess these data to uncover insights for more informed decisions.
  • Cloud computing is used to connect people from any location, at any time and any device with high-definition audio and video features with global distribution.
  • Users use intelligent models to engage clients and offer them valuable understandings from the data taken.
  • We often get software update notifications. Cloud computing provides users with software updates providing the latest versions and updates as per their requirement.

Drawbacks of Cloud Computing

So far, we have seen the features and benefits of cloud computing. But at the same time, we cannot ignore that it has its drawbacks. Let us look at some of them.

  • One of the biggest disadvantages of the technology is the risk of data confidentiality as multiple people can access the data.
  • Cloud computing works when there is an internet connection. In the absence of the internet, or if the internet path to the cloud has some disturbance, access to cloud computing machine would be complicated.
  • As everyone can access the public cloud, there is a probability of data getting hacked. Data being highly confidential, businesses cannot afford any leakage of sensitive data.
  • When we store data on the cloud, we depend on a third party to take care of our data. We become dependent on the data center of the provider.
  • In case someone experiences some technical challenges, he/she has no option to rectify from their end. Instead, they have to connect with the hosted provider’s technical support team for help.
  • Cloud computing technology does not work well in case the connection is low.
  • Every cloud provider differs from one another. Hence, it may be possible that the users may not get the same features. Some providers offer limited versions and allow the most popular features only, while some do not provide features and customization as per the user’s demand.

As highlighted in the image above, through cloud computing, it is possible to read a newspaper, do net banking, read books, save files and many more.

After having some idea about cloud computing, let us also understand some of the benefits of cloud computing.

GOOD READ: 3 Stocks to Leverage the Cloud Computing Boom in 2020

What are the Benefits of Cloud Computing?

Cloud computing can be considered as a significant transition from the traditional working style. Below are some of the reasons why most companies are switching to the cloud.

Reduces Operating Cost:

One of the major advantages of cloud computing is that it saves a lot of money. People do not have to worry about purchasing hardware to save any file. Different software is also available through the cloud. Thus, it reduces additional cost purchasing software.

Cloud Computing is highly elastic:

Probably the biggest advantage of cloud computing is its elasticity. In essence, it means providing the required computing power, storage, and bandwidth at any point of time from any geographical location.

Supports Business Continuity:

Cloud computing has a critical role to play at the time of any disaster. For any business, protecting data and system is critical during a BCP (business continuity plan) situation. Whatever be the situation, with cloud computing, one can be sure that their data are safe and secure.

Supports Collaboration Within Organization:

When the resources are available on the cloud, the employee would be able to access the files, communicate with each other, even while sitting at different corners of the world.

Automatic Updates:

Users of cloud computing services usually receive automatic updates related to the software. In case one has a software on one’s device connected to the cloud, and there is an update on the software, one would also be eligible for automatic software upgrade depending on the software fees.

Security:

Various cloud providers are offering a set of policies, technologies, and controls capable of strengthening the security of your data, files, applications, plus an infrastructure to safeguard from external threat.

How Many Types of Cloud Computing are there?

There are different types of clouds catering to varying needs of the end-users. There are several models, solutions, types, and services that have grown with time and that match the specific needs of the user.

Let us discuss the three types of cloud computing.

Public Cloud:

Public clouds are owned and controlled by third-party cloud service players. These providers offer services like servers and storage over the internet. An example of Public cloud is Microsoft Azure. With the public cloud, the entire hardware, software, and other supporting infrastructure are owned by the cloud provider. The services on the public cloud can be accessed via a web browser.

Private Cloud:

In a private cloud, the resources on the cloud can be accessed entirely by a single company. This private cloud could be situated on the company’s on-site data center. In some cases, these companies provide third-party service providers to manage their private cloud.

Hybrid Cloud:

Hybrid cloud, as the name indicates, is the amalgamation of both the private and public cloud. In Hybrid cloud, the two are bound together via a technology that enables data and applications to be shared. With data free to move between the two clouds, there exists more flexibility within the business and more deployment options, thus, helping to optimize the prevailing infrastructure, security, and compliance.

What are the different types of Cloud Computing Models?

Cloud computing has three types of models. Each model signifies a different component of the cloud computing stack.

Infrastructure as a Service (IaaS):

Infrastructure as a Service comprises of the basic building blocks for cloud IT, and it gives access to network features, computer, and data storage spaces. This cloud model provides its user with the highest level of elasticity and management control over the IT resources. 

Platform as a Service (PaaS):

Platform as a Service model eliminates the need for a company to manage the underlying infrastructure. It supports its users to concentrate on the implementation as well as the management of their applications. The advantage of using this model is that the user need not have to think about purchasing any resource, capacity planning, software maintenance that is needed to run the application.

Software as a Service (SaaS):

Software as a service model gives the user a complete product that is operated and managed by the service provider. In most cases, people refer to SaaS as an end-user application. Through this SaaS model, the user gets relieved from the tension of maintaining the service and management of underlying infrastructure. The SaaS user only has to think about different ways to use a particular application. An example of SaaS is an email one sends to another person without worrying about how the application is operating at the back-end.

Cloud Computing Outlook

Cloud computing has massive scope for the future. Its role was significant during the pandemic when most people switched to remote working. Market experts believe that cloud computing will grow at a considerable pace. According to some research reports, the cloud computing market is expected to grow at a CAGR in the late teens and exceed US$800 million in size by 2025.

Existing Market Dynamics:

  • Improved return on investment at a lower infrastructure and storage cost.
  • Existing requirement to handle regulatory and compliance policy needs.
  • Increase in the adoption of hybrid cloud service.
  • Cloud computing experiences challenges of cyber-attacks impacting businesses.

INTERESTING READ: 5G, Cloud Computing, Bundling – the three pieces of pie in Australian Telecom

Uses of Cloud Computing

Most things have gone online in the present times, and people are using online mode to watch movies, play games, listen to music, and many more. This is possible because of cloud computing. From the smallest companies to the biggest in the world, all are utilizing this technology for several purposes. In this section, we would look at a couple of applications of cloud computing.

  • Cloud is used for building, deploying, and scaling applications at a faster rate.
  • Cloud is used to reduce the application cost and time via cloud infrastructures that can be easily scaled up or down as per the requirement.
  • Through cloud computing, a user can protect data in a cost-effective way and on a massive scale. It also transfers the data to an offsite cloud storage system that can be assessed from any place and device.
  • Cloud is used for consolidating data across teams, units, and locations. Different people can then assess these data to uncover insights for more informed decisions.
  • Cloud computing is used to connect people from any location, at any time and any device with high-definition audio and video features with global distribution.
  • Users use intelligent models to engage clients and offer them valuable understandings from the data taken.
  • We often get software update notifications. Cloud computing provides users with software updates providing the latest versions and updates as per their requirement.

Drawbacks of Cloud Computing

So far, we have seen the features and benefits of cloud computing. But at the same time, we cannot ignore that it has its drawbacks. Let us look at some of them.

  • One of the biggest disadvantages of the technology is the risk of data confidentiality as multiple people can access the data.
  • Cloud computing works when there is an internet connection. In the absence of the internet, or if the internet path to the cloud has some disturbance, access to cloud computing machine would be complicated.
  • As everyone can access the public cloud, there is a probability of data getting hacked. Data being highly confidential, businesses cannot afford any leakage of sensitive data.
  • When we store data on the cloud, we depend on a third party to take care of our data. We become dependent on the data center of the provider.
  • In case someone experiences some technical challenges, he/she has no option to rectify from their end. Instead, they have to connect with the hosted provider’s technical support team for help.
  • Cloud computing technology does not work well in case the connection is low.
  • Every cloud provider differs from one another. Hence, it may be possible that the users may not get the same features. Some providers offer limited versions and allow the most popular features only, while some do not provide features and customization as per the user’s demand.

In the recent past, the absolute return approach of Investing has turned out to be one of the fastest-growing investment strategies worldwide. A lot of financial advisors talk about such investments providing absolute returns. So, what exactly are the “Absolute Returns” and are they are promising? What is meant by Absolute return? Absolute return computes the increase or decrease, in an asset over a period of time, as a proportion of the original investment amount. The focus here is only on that specific asset or portfolio and not related market events. Absolute returns only consider the price movement for any specified time period. Absolute return, reckons an investment’s performance without considering the expanse of time for which investment was committed. Absolute returns can be computed for a quarter, semi- annual, annual period, 3-year duration or more. Absolute Returns are independent of Market movements and thus do not draw relative comparisons. It is one of the most commonly used investment performance metric in Hedge Funds and Mutual Funds. How to compute Absolute return? Suppose an investor Mr. Rich, invested AUD 50,000 5 years back, and the current value of his investment is AUD 75,000. The Absolute return on Mr. Rich’s investment would be 50 %, calculated using- Copyright © 2021 Kalkine Media Pty Ltd Copyright © 2021 Kalkine Media Pty Ltd So, Copyright © 2021 Kalkine Media Pty Ltd Absolute returns are just returns from point of time to other. The notion of an 'absolute return' seems very attractive to get investors’ attention as it ignores the relative market movement and promises an appreciation with zero correlation to markets. Anyhow, Absolute Return technique of computing investment yields is an apt way of calculating return on investment, predominantly in the early stages. There are numerous other types of return metrics an investor can look for later on. Major 4 types mattering most to investors being –  Absolute Return, Relative Return, Total Return & CAGR. What is the difference between Absolute Return, Relative Return, Total Return & CAGR? Absolute return refers to the gain/ loss in a single investment asset/ portfolio but to comprehend how their investments are acting relative to various market yardsticks, relative return is taken into consideration.   Relative return is the excess or deficit an asset achieves over a timeframe matched to a market index. Benchmark Return – Absolute return, gives the Relative return also called sometimes as alpha. Example, if S&P index gives a 10% return during a given period and one’s investment portfolio gives an absolute return of 12% then relative return on investment is positive/ excess 2%. Total returns take into account the effect of intermittent incomes as well as dividends. For example, in an equity investment of AUD 200 having current value AUD 240, the company also declares a dividend of AUD 10 during the year. Total returns will take into account this $10 dividend too. Thus, Total returns on the investment of AUD 200 now will be 25.00% = {(240+10-200)/200} x 100 Absolute and Total returns are easy to calculate as performance metrics, but the real challenge is when comparisons are drawn based on time period of return. Here comes in CAGR, it takes into account the term of the investment too, thus giving a more correct and comparable picture. It is computed as: CAGR (%) = Absolute Return / Investment period (equated in years) Consider for example, two investment options: One where investor earns absolute returns of 10% in 24 months and another where investor earns 5% absolute returns in 9-month duration. So, CAGR would be- For option one: CAGR = 5.00% i.e.  10%/2 (24 months/12 months is equals to 2 years) For option two: CAGR = 6.66% i.e. 5%/0.75 (9 months/12 months is equals to 0.75 years) What’s wrong with just measuring investment performance using Absolute Returns? Absolute returns will only tell an investor how much his/her investments grew by; they do not tell anything about the speed at which investments grew. When people talk about their real estate investments and say, “I bought that house for X in the year 2004. It’s worth 4X today! It has quadrupled in 17 years.” This is an application of absolute return. The drawback here is that it takes into account only the capital appreciation and doesn’t draw comparison with options having different time horizons. Investors can rely on this measure of investment performance only if they are looking for higher returns, without bothering how fast they were generated. Absolute return also doesn’t convey much about an investment compared to relative markets. Then, why do Hedge Fund/ Mutual Fund Managers choose an Investment strategy based on Absolute returns? Absolute returns should be used at times when investors are willing to shoulder some risk in exchange for a prospective to earn excess returns. This is irrespective of the timeframe and Fund administrators who measure portfolio performance in relation of an absolute return typically aim to develop a portfolio that is spread across asset categories, topography, and economic phases. They are looking for below mentioned points in their portfolios- Positive returns- An absolute returns approach of investment targets at producing positive returns at all costs, irrespective of the upside & downside market movements. Independent of yardsticks- The returns are in absolute terms and not in comparison to a benchmark yield or a market index. Diversification of portfolio- With the intention of distribution of risk, among different investment options producing positive returns in diverse ways a mixed bag of absolute return assets give a diversified investment portfolio. Less volatility- The total risk of investment is spread across the different asset held in such a portfolio. Ensuring less overall volatility in collective returns. Actively adjustable to market movements– Usually, investments look for positive returns with zero market correlation. Market shares a negative correlation with absolute return investments and vice versa. In any investment atmosphere, there are varied investment strategies and goals. Absolute return investment strategies are looking to avoid systemic risks using unconventional assets and derivatives, short selling, arbitrage and leverage. It is appropriate for investors who are prepared to bear risk for short and long-term gains.

A candlestick pattern which occurs when a bearish candle on 2nd day closes below the middle of bullish candle of 1st day. The pattern is formed by a down candle preceded by an up candle. One of the key aspects of this pattern is that both the candles should be pretty large, demonstrating strong interest and participation of investors and traders.

What is Data Mining? Data mining is a process that facilitates the extraction of relevant information from a vast dataset. The process helps to discover a new, accurate and useful pattern in the data to derive helpful pattern in data and relevant information from the dataset for organization or individual who requires it. Key Features of data mining include: Based on the trend and behaviour analysis, data mining helps to predict pattern automatically. Predicts the possible outcome. Helps to create decision-oriented information. Focuses on large datasets and databases for analysis. Clustering based on findings and a visually documented group of facts that were earlier hidden. How does data mining work? The first step of the data mining process includes the collection of data and loading it into the data warehouse. In the next step, the data is stored and managed on cloud or in-house servers. Business analyst, data miners, IT professionals or the management team then extracts these data from the sources and accordingly access and determine the way they want to organize the data. The application software performs data sorting based on user’s result. In the last step, the user presents the data in the presentable format, which could be in the form of a graph or table.         Image Source: © Kalkine Group 2020 What is the process of data mining? Multiple processes are involved in the implementation of data mining before mining happens. These processes include: Business Research: Before we begin the process of data mining, we must have a complete understanding of the business problem, business objectives, the resources available plus the existing scenario to meet these requirements. Having a fair knowledge of these topics would help to create a detailed data mining plan that meets the goals set up by the business. Data Quality Checks: Once we have all the data collected, we must check the data so that there are no blockages in the data integration process. The quality assurance helps to detect any core irregularities in the data like missing data interpolation. Data Cleaning: A vital process, data cleaning costumes a considerable amount of time in the selection, formatting, and anonymization of data. Data Transformation: Once data cleaning completes, the next process involves data transformation. It comprises of five stages comprising, data smoothing, data summary, data generalization, data normalization and data attribute construction. Data Modelling: In this process, several mathematical models are implemented in the dataset. What are the techniques of data mining? Association: Association (or the relation technique) is the most used data mining technique. In this technique, the transaction and the relationship between the items are used to discover a pattern. Association is used for market basket analysis which is done to identify all those products which customer buy together. An example of this is a department store, where we find those goods close to each other, which the customers generally buy together, like bread, butter, jam, eggs. Clustering: Clustering technique involves the creation of a meaningful object with common characteristics. An example of this is the placement of books in the library in a way that a similar category of books is there on the same shelf. Classification: As the name suggests, the classification technique helps the user to classify and variable in the dataset into pre-defined groups and classes. It uses linear programming, statistics, decision tree and artificial neural networks. Through the classification technique, we can develop software that can be modelled so that data can be classified into different classes. Prediction: Prediction techniques help to identify the dependent and the independent variables. Based on the past sales data, a business can use this technique to identify how the business would do in the future. It can help the user to determine whether the business would make a profit or not. Sequential Pattern: In this technique, the transaction data is used and though this data, the user identifies similar trends, pattern, and events over a period. An example is the historical sales data which a department store pulls out to identify the items in the store which customer purchases together at different times of the year. Applications of data mining Data mining techniques find their applications across a broad range of industries. Some of the applications are listed below: Healthcare Education Customer Relationship Management Manufacturing Market Basket Analysis Finance and Banking Insurance Fraud Detection Monitoring Pattern Classification Data Mining Tools Data mining aims to find out the hidden, valid and all possible patterns in a large dataset. In this process, there are several tools available in the market that helps in data mining. Below is a list of ten of the most widely used data mining tools: SAS Data mining Teradata R-Programing Board Dundas Inetsoft H3O Qlik RapidMiner Oracle BI

  What is Nasdaq?  Nasdaq Stock Market is a global electronic marketplace for buying and selling securities on an automatic, transparent and speedy electronic network. It trades through a computer system rather than in a physical trading floor for the traders to trade directly between them. It is an American stock exchange located in the Financial District of Lower Manhattan in New York City. NASDAQ is owned by the company Nasdaq. Inc. and ranked second on the list of stock exchanges as per market capitalisation of shares traded. The first rank goes to the New York Stock Exchange. Nasdaq-National Association of Securities Dealers Automated Quotations, was founded in 1971 by the National Association of Securities Dealers (NASD) to avoid inefficient trading and delays. Nasdaq. Inc. company also owns the Nasdaq Nordic stock market network in addition to other exchanges. The exchange has more than 3,100 companies listed. They are the highest trade volume companies in the US market, valued more than US$14 trillion in total.  Good read: NASDAQ surged up above 10,000 – Tech stocks setting a new benchmark   What is Nasdaq known for?  Nasdaq currently is the largest electronic stock market, and it is most well-known for its high-tech stocks. But it also has a variety of companies listed such as capital goods, healthcare, consumer durables and nondurables, energy, public utilities, finance and transportation.  Nasdaq boasts of having some of the largest blue-chip companies in the world and attracts high growth-oriented companies. Its stocks are known to be volatile than those listed on other exchanges. Apart from listed stocks, Nasdaq also trades in over the counter (OTC) stocks. The ticker symbols for the listed companies’ stocks on the Nasdaq have four or five letters.  The Nasdaq Composite index was initially termed as Nasdaq. It included all the stocks listed on Nasdaq stock market and also many stocks listed on Dow Jones Industrial Average and S&P 500 Index. The index has more than 3,000 stocks listed on it which include the world’s largest technology and biotech giants like Microsoft, Apple, Amazon, Alphabet, Facebook, Gilead Sciences, Tesla and Intel.    Did you read: Blue-chip stocks: Value versus Growth in Covid-19 Era   Companies have to meet certain criteria to get listed on the NASDAQ National Market.  The entities have to meet financial, liquidity, and corporate governance-related requirements. Have to get registered with the Securities Exchange Commission (SEC) Have to maintain the stock price of at least US$1. Company’s value of outstanding stocks must total at least US$1.1 million.   The small companies which cannot meet the criteria can get listed on NASDAQ Small Caps Market. Nasdaq changes the companies as the eligibility of the companies keeps changing.  Image: Kalkine   What are different Nasdaq indexes?  Nasdaq uses an index to list its stocks like any other stock exchange. The index delivers stock performance snapshots. The New York Stock Exchange (NYSE) has the Dow Jones Industrial Average (DJIA) as its primary index; it tracks the stock price of 30 big companies. Nasdaq Composite and the Nasdaq 100 are two indices of Nasdaq. Nasdaq Composite measures the performance of more than 3,100 listed companies’ stocks trading daily on Nasdaq. Nasdaq 100 is a modified capitalisation-weighted index. This index has listed companies from various sectors, but the majority is from the technology industry. Depending on their market value, Nasdaq adds or removes the companies from its index Nasdaq 100.  Both the NASDAQ Composite and the NASDAQ 100 indexes have listed companies from the United States as well as global companies. On the other hand, Dow Jones Industrial Average index does not include companies outside of the US.    Did you read: Hanging Up Your Boots? Investment Strategies to Help you Relax and Build Wealth   Brief history  Nasdaq performance in the past has been groundbreaking and extraordinary. One of its highly regarded accomplishments is that Nasdaq was the first-ever stock exchange for offering electronic trading. It was the first to launch a website and stored all the records in the cloud. Interestingly, Nasdaq also sold its technology to other stock exchanges. Nasdaq invented the modern Initial Public Offering (IPO) as it listed venture-capital-backed companies. Initially, it merged with the American Stock Exchange. It formed the Nasdaq-AMEX Market Group, later on, the AMEX index was acquired by NYSE Euronext, and the entire data was integrated into NYSE. In 2007 Nasdaq acquired OMX which is a Swedish-Finnish financial company. Followed by which Nasdaq changed its name to NASDAQ OMX Group. NASDAQ OMX Group bought the Boston Stock Exchange and also the Philadelphia Stock Exchange which was the oldest stock exchange in the US.  Also read: Nasdaq index’s Tech Titans kicks off with Bold Performances   How to trade on Nasdaq?  Though the New York Stock Exchange is the largest exchange by market capitalisation, Nasdaq is the largest by trading volume due to its electronic quote mechanism. Nasdaq is a dealer’s market where the public buys and sells stocks with the help of the market maker (a registered broker/dealer). The market maker provides the buy and sell quotes and takes the position in those stocks. NYSE works differently as the buyers and sellers can trade directly with each other, and a specialist allows the trade. On Nasdaq, the market maker owns inventory and trade stocks in his/her capacity. Good read: Why NASDAQ Composite index plunged 5%?

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