Nasdaq Financial Variable

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The financial variable I chose was, the NASDAQ Composite (IXIC). A stock market index that is comprised of common stocks and similar securities. The price of NASDAQ from 1971 to present day has grown significantly over time. Opening at just over a hundred dollars, the NASDAQ’s price now hovers around six thousand. Even though this data is collected on a daily basis, I used a quarterly observation date of prices to show how over multiple decades the price of the NASDAQ rose and fell. Using a daily observation is not necessary because the quarterly prices, can reflect how each quarter did every day through that one quarter. The NASDAQ ended up being a good financial variable because how the data is measured on average at the end of the period rather than over the period. From the start of the NASDAQ it grew in small increments until 1992 when it skyrocketed over two thousand dollars in just six years. Although its growth did not stay consistent after this. The NASDAQ faced major hits in the early 2000’s as well as in 2008. Both of these events can be associated with extreme events that happened in the past. In the early…show more content…
The NASDAQ today is one of the most popular traded stock indexes today. Many people that involve themselves in the financial system, use the NASDAQ as a model to see how well the market as a whole is doing. Another reason for using the NASDAQ is to see how much it can be impacted by events such as the financial crisis in 2008 or even 9/11. Knowing that these events have great influence on the market can help further inform those who involve themselves in the financial system, for down the road in life. Having a good sense how the market will react to certain events, and a well thought out plan that will not allow losses to amount to the extremes that they once did. Analyzing the NASDAQ Composite, can be a great reflection for how strong the U.S. economy
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