NASDAQ 100 Overview

The Nasdaq 100 Index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain financial companies including investment companies.

Launched in January 1985, the Nasdaq 100 Index represents the largest non-financial domestic and international issues listed on The Nasdaq Stock Market based on market capitalization. The Nasdaq 100 Index is calculated under a modified capitalization-weighted methodology. The methodology is expected to retain in general the economic attributes of capitalization-weighting while providing enhanced diversification. To accomplish this, Nasdaq will review the composition of the Nasdaq 100 Index on a quarterly basis and adjust the weightings of Index components using a proprietary algorithm, if certain pre-established weight distribution requirements are not met.

The number of securities in the Nasdaq 100 Index makes it an effective vehicle for investors. In January 1994, options on the Nasdaq 100 Index began trading on the Chicago Board Options Exchange. The Chicago Mercantile Exchange began to trade futures and futures options on the Nasdaq 100 Index in April of 1996. Nasdaq 100 Index Tracking Stock (QQQQ) began trading on the American Stock Exchange in March 1999. In addition, the Index is used as a benchmark for financial products in many countries around the world.

Leave a Reply

Your email address will not be published.