What is NASDAQ 100

Ever Wondered what all this is about?

NASDAQ 100 (NDX) is essentially a stock index which is generally used to measure the performance of hundred companies. NASDAQ 100 Index began to function on January 31, 1985. On 1 December, 2004 the NASDAQ 100 QQQ symbol was changed to four letter symbol QQQQ. These hundred companies are listed in the NASDAQ stock exchange or NASDAQ stock market. Some of the people get confused with NASDAQ composite and NASDAQ future but they are entirely different. The term NASDAQ means National Association of Securities Dealers Automated Quotations. NASDAQ 100 index consists of clutch of companies that come under the NASDAQ. NASDAQ Financial 100 Index and NASDAQ 100 Technology Sector index are the major NASDAQ 100 indexes. In NASDAQ 100 only the performances of certain companies with the specific sectors of the economy are measured such as biotechnology, technology, retail, etc and they form the NASDAQ 100 stocks.. The companies that are to be listed on the NASDAQ 100 index have to fulfill certain criterions of the NASDAQ stock market which are absolutely mandatory.

Guidelines for Listing in NASDAQ 100 Index

Given below are the various guidelines that the companies must adhere with in order to list themselves in NASDAQ 100 index:

• The company must be non-financial company.
• The companies listed in NASDAQ 100 must have been publicly traded for not less that two years.
• The companies must have average trading volume of at least 200,000 shares.
• The companies that are to be listed must not be bankrupt.
• The companies must not be involved in potential merger transactions

Click here to Get a complete list of stocks in NASDAQ 100 Index: