Investor Glossary-nasdaq 100 indexInvestor Glossary-nasdaq 100 indexInvestor Glossary-nasdaq 100 indexInvestor Glossary-nasdaq 100 indexInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Nasdaq 100 Index

The HTML to link to this page
 

The Nasdaq 100 Index is an index representing the top 100 non-financial companies trading on the Nasdaq Stock Market (Nasdaq). The Nasdaq 100 Index symbol is NDX. At its inception in January 1985, the Nasdaq 100 Index was set at a value of 250. This base value of the Nasdaq 100 Index was changed in January 1994 to a value of 125. The Nasdaq 100 Index is weighted based on a modified market capitalization formula. To compute the Nasdaq 100 Index, Nasdaq computes each stocks index share weight. Nasdaq then multiplies this index share weight by the corresponding stock's last sale price for the day. Nasdaq sums this product for all stocks of the Nasdaq 100 Index and divides this sum by the Nasdaq 100 Index divisor in order to scale down the resulting value of the index which facilitates reporting. The Nasdaq 100 Index includes both US and international companies. Eligibility criteria for inclusion in the Nasdaq 100 index differ between US and International companies but all Nasdaq 100 Index companies must trade at least 200,000 shares per day on Nasdaq. The Nasdaq 100 Index is adjusted quarterly to account for minor changes in the numbers of outstanding shares (i.e. less than 5% change) and to maintain a pre-defined level of diversification between the Nasdaq 100 Index companies. The Nasdaq 100 Index quarterly adjustment is calculated on the first Friday in March, June, September, and December, at the close of trading. The Nasdaq 100 Index quarterly updates become effective on the third Friday in March, June, September, and December, right after the close of trading. In addition to quarterly share updates, the Nasdaq 100 Index is reconstituted annually. The Nasdaq 100 Index annual reconstitution process starts at the beginning of December and company additions and deletions become effective on the third Friday in December, right after the close of trading. Nasdaq can also, at its discretion, decide to add or remove companies from the Nasdaq 100 Index to maintain the continuity of the index.



Rate this Nasdaq 100 Index definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, irrevocable trust, FICO score, labor relations, required rate of return, current ratio, debt service coverage, margin rate, risk management, retained earnings, covered put, 1035 exchange, average price per share, phantom income, 144a, Key Rate Duration, implied volatility, quality assurance, cancelled check, reverse mortgage, stock market close, limit order, inflation, liquidity ratio, diluted share, command economy, option premium, EBITDA, ex-dividend, minority interest, FTSE, annual return, 401a, LIBOR, balance sheet, wholly-owned subsidiary, per diem, ex-dividend date, Zero Cost Collar, deferred revenue, stock split, 1031 exchange, VIX, real GDP, deferred tax, class C shares, open position, dividends payable, APR


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use