Some of the other NASDAQ indices that currently exist include:

1) NASDAQ Financial-100 Index

This index is comprised of the 100 biggest international and domestic financial companies on the NASDAQ. Companies are chosen mainly on their market capitalization.

2) NASDAQ Composite Index

With more than 3000 companies listed, this index is considered one of the largest and most broad-ranging. It includes all common type stocks from domestic and international companies that appear on the NASDAQ stock market.

3) NASDAQ Bank Index

As the name suggests, this index contains all the institutions classified as banks, including companies offering a range of financial services.

4) NASDAQ Biotechnology Index

This index classifies companies according to their capitalization and it lists companies classified as either pharmaceutical or biotechnical in nature.

5) NASDAQ Computer Index

This index contains companies offering manufacturing, distribution, and servicing of computers or computer parts. Internet service providers, computer part manufacturers, IT consultants, and others are all listed on this index.

6) NASDAQ Industrial Index

This index lists those companies not included in the other sector indices put out by NASDAQ. This index includes companies involved in resource industries such as lumber, forestry, oil, travel, leisure and others.

7) NASDAQ Insurance Index

This index includes companies that are classified as assurance or insurance companies by the FTSET Global Classification System. Life insurance, insurance brokers, home insurance providers, and other types of assurance and insurance companies are included here.

8) NASDAQ Other Finance Index

This index includes companies classified as investment companies, specialty finance companies, or real estate companies. Finance companies that do not fit on any other NASDAQ list are also listed here. Property agencies, consumer finance companies, security exchanges, mortgage financing entities, investment banking services, and other companies are listed here.

9) NASDAQ Telecommunications Index

This index includes companies that are classified as entertainment, telecommunications, and television, radio, and film companies.

10) NASDAQ Transportation Index

This index lists companies that offer freight, road, air, train, and water transportation. Related companies may also be listed here including companies providing services related to transportation.

Knowing the definition of NASDAQ is not enough - you also have to understand how the exchange works in order to make the right investment decisions. Knowing that the NASDAQ stock exchange is a computerized system for trading OTC stocks puts you ahead of the game when it comes to investing. Being able to include stocks from the NASDAQ stock market can be a great way to ensure that your investment portfolio grows. Many investors like the NASDAQ not only for its benchmark tech stocks - which are included in the NASDAQ 100 and other indexes -- but also because following the NASDAQ gives sophisticated investors an idea of how the stock market is doing overall.