To reply to this question it is important to take into account the difference between buying these shares online and speculating on their price. In fact, if you buy these shares outright from the companies quoted on the NASDAQ you may pay in Euros but will be subject to the Euro exchange rate with the dollar. If you simply trade in them online then your speculative investments will be completed in your principal currency without the application of an exchange rate.
Where can NASDAQ shares be purchased?
The European stock market investors are often constrained from investing in assets other than European which are often the only ones available in classic financial placement products. But it is now possible to invest in assets from around the world, including the shares quoted on NASDAQ, notably through the use of online trading platforms. In this article we will explain in detail more about these assets that are highly popular worldwide and explain how and where you can buy or speculate on them.
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What is the NASDAQ and which shares are quoted there?
First of all, a quick reminder relating to NASDAQ and its stock market index bearing the same name. The name NASDAQ actually stands for ‘National Association of Securities Dealers Automated Quotations’ and it is the second largest financial market in the United States, just after the NYSE. It is also the largest financial marketplace worldwide for stock market transactions relating to electronical and technological shares.
The NASDAQ stock market has its own stock market index, the NASDAQ 100 which is composed of 100 companies as its name indicates. As with the majority of stock market indices, the shares included in the NASDAQ are from companies with the highest stock market capitals. Among the most popular assets in this stock market and on the NASDAQ index itself we find the large technology companies such as Netflix, Google, Amazon, and Apple among others.
What are the different methods available for buying shares quoted on the NASDAQ?
It is of course still possible to buy the shares of companies quoted on the NASDAQ through investment solutions and classic placements through banks and online brokers or funds including foreign assets but these are often expensive, particularly for European investors, and require a significant investment.
But for the last few years now there exists another method of investing in American assets including the shares on Nasdaq. This is by subscribing to an online trading platform through the brokers that offer specific contracts enabling you to speculate on the rise or fall in the price of these assets online.
These contracts are called CFDs, or ‘Contracts for the Difference’, and do not require the outright purchase of the shares. Here the principle is that you take a buying or selling position on the NASDAQ share price or index rate and your gain or loss corresponds to the difference between the rate or price from the moment you open and when you close your position.
It is important to note here that these platforms also enable you to speculate directly on the NASDAQ index stock market rate, in the same way, not only on the company shares of which it is composed.
Some examples of shares that you can trade in on the NASDAQ:
As we explained briefly earlier, the NASDAQ stock market index is composed of a number of shares of large and worldwide renowned companies whose assets are particularly popular.
You can for example trade in Apple shares which are currently the second most traded asset in this index of which the issuing company is specialised in the design and manufacture of mobile communication devices.
You can also trade in Facebook shares, another very popular company at present, or other high technology companies such as Amazon or Google.
Which indicators should you follow to take position on the NASDAQ?
As you undoubtedly already know, the NASDAQ is a stock market index that is comprised of IT or high technology company shares on the stock market. Therefore if you plan to trade in these shares you will need to be knowledgeable and closely follow the movements and activities of this sector and the companies that are active in this sector.
If you speculate on one or several NASDAQ company shares you should also complete precise analyses of the companies concerned taking into account various environmental, competitive, financial and strategic factors which will assist you in the forecast of their progression in the coming years. It is also important not to forget to use the technical analysis and stock market charts to gauge the strength and volatility of the market and confirm or revise your forecasts.
Finally, if you speculate directly on the NASDAQ, the factors to take into consideration are far greater particularly relating to the global economic data, the geo-political conflicts and the regulations.
Frequently Asked Questions
Are all the shares on the NASDAQ available online?
Of course, all the assets included in the NASDAQ may not be accessible online. However the majority of the company shares included in the NASDAQ 100 stock market index are available through the CFD trading platforms provided by online brokers. To be sure to be able to trade in the shares that interest you do check if your broker offers them before subscribing online and opening your trading account.
Are the NASDAQ shares more advantageous than the others?
No! The shares on the stock market quoted on the NASDAQ market are no more or less advantageous than the others. The only advantages that they may have over the others concerns their high liquidity and the amount of information available online about the issuing companies. It should be remembered here that it is your ability to identify profitable stock market opportunities that will make the difference.
76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Trade CFDs with Plus500
