What determines whether a stock or on the Dow or Nasdaq?

BC: What determines whether a stock or on the Dow or Nasdaq?
I thought the Nasdaq is tech stocks but many of them don’t seem like tech stocks to me (Select Comfort for example) What criteria dtermine the stocks placement on the Dow or Nasdaq?

Answers and Views:

Answer by David545
The Dow is comprised of 30 stocks from the (older) New York Stock Exchange. The 30 stocks which make up the Dow-Jones Average are subject to change from time to time, based on business trends (example = Microsoft is now included; steel producers have been dropped in recent years).

The NASDAQ is not necessarily a tech exchange, but is a newer alternative to the NYSE.

It’s much easier to be listed on the NASDAQ than on the NYSE, so start-ups often begin there. Some do start on Nasdaq and grow and go on to the more established NYSE.

Answer by Medici
Dow Jones is a measure of how well are “traditional companies” doing. It groups 30 well established companies, also called blue chips. A company may not choose whether it is part of the Dow Jones. It is a highly selective process and a committee which decides which 30 companies get to represent traditional economy.

Now Nasdaq is a stock market by itself, just like the New York Stock Exchange (NYSE). Nasdaq functions as a dealer market, unlike the auction market environment where traders assemble in a centralized, continuous, open market. Nasdaq trades three distinct levels of stocks. The Nasdaq stock market is the second largest equity market in the US after NYSE.

Answer by Mathew C
Dow and Nasdaq are different in the sense that Dow is the Index for New York Stock Exchange. Nasdaq is for a different stock exchagne called the National Association for Security Dealers Accepted Quotation. The companies in the NYSE need to have certain minimimum investment which is higher specification than those of Nasdaq. For example if it is $ 100mn for NYSE then it will be $ 50mn for Nasdaq.