The NASDAQ Composite Index includes over 3,000 companies and is known for its strong concentration in technology and growth-oriented firms. It features major players like Apple, Amazon, Microsoft, and Alphabet, and is often used to gauge the performance of the tech sector specifically. While NASDAQ is a highly influential and widely tracked index, it is not composed of 30 companies — that's a defining feature of the Dow Jones Industrial Average.Unlike the Dow, which is price-weighted, the NASDAQ is market capitalization-weighted, meaning larger companies have a greater impact on its movements. The NASDAQ also includes a broader range of companies, from small startups to global tech giants. Understanding the difference in index construction and purpose helps investors interpret what each one truly represents in market coverage and investor sentiment.