The NASDAQ-100 is a stock market index of the 100 largest non-financial companies listed on the NASDAQ. It is a modified version of the capitalization-weighted index. Index companies' weights are based on their market capitalizations, with certain rules limiting the influence of the largest components. It does not contain finance companies, and includes companies incorporated outside the United States. Both factors distinguishing it from the Dow Jones Industrial Average, is the exclusion of financial companies distinguishing it from the S&P 500 Index.
Story
The NASDAQ-100 started on January 31, 1985 by the NASDAQ, trying to promote itself in the shadow of the New York Stock Exchange. This particular index consists of Industrial Technology, Retail, Telecommunications, Biotechnology, Healthcare, Transportation, Media and Service companies, and the NASDAQ Financial-100, consists of banking companies, insurance companies, brokerages and mortgage companies.
The base price of the index was initially set at 250, but when it closed at around 800 on December 31, 1993, the base was reset at 125 the following trading day, leaving the NASDAQ-100 half at a lower price than the better known. NASDAQ Composite. Adjustments were made in the first annual report in 1993 in advance of options on the index that would trade on the Chicago Board Options Exchange in 1994. Foreign companies were first admitted to the index in January 1998, but there have been changes in standards to answer before they could be added.
Standards
The Nasdaq has over the years put in place a number of stringent standards that companies must meet before being included in the index. These standards include the following:
- Be listed on NASDAQ exclusively on any tier of the Global Market.
- Be listed for two years (or if it meets market capitalization standards, in one year).
- Have an average daily trading volume of 200,000 shares.
- Be updated with respect to quarterly and annual reports.
- Not be in bankruptcy proceedings.
In addition, companies with multiple classes of shares are only allowed to have one class in the index (generally the largest class in terms of market capitalization).
components
- Activision Blizzard (ATVI)
- Adobe Systems Incorporated (ADBE)
- Akamai Technologies, Inc. (AKAM)
- Alexion Pharmaceuticals (ALXN)
- Altera Corporation (ALTR)
- Amazon.com, Inc. (AMZN)
- Amgen Inc. (AMGN)
- Apollo Group, Inc. (APOL)
- Apple Inc. (AAPL)
- Applied Materials, Inc. (AMAT)
- Autodesk, Inc. (ADSK)
- Automatic Data Processing, Inc. (ADP)
- Baidu.com, Inc. (BIDU)
- Bed Bath & Beyond Inc. (BBBY)
- Biogen Idec, Inc. (BIIB)
- BMC Software, Inc. (BMC)
- Broadcom Corporation (BRCM)
- CH Robinson Worldwide, Inc. (CHRW)
- CA, Inc. (HERE)
- Celgene Corporation (CELG)
- Cerner Corporation (CERN)
- Check Point Software Technologies Ltd. (CHKP)
- Cisco Systems, Inc. (CSCO)
- Citrix Systems, Inc. (CTXS)
- Cognizant Technology Solutions Corporation (CTSH)
- Comcast Corporation (CMCSA)
- Costco Wholesale Corporation (COST)
- Ctrip.com International, Ltd. (CTRP)
- Dell Inc. (DELL)
- DENTSPLY International Inc. (XRAY)
- DirecTV (DTV)
- Dollar Tree, Inc. (DLTR)
- eBay Inc. (EBAY)
- Electronic Arts Inc. (ERTS)
- Expedia, Inc. (EXPE)
- Washington Expeditors International, Inc. (EXPD)
- ExpressScripts, Inc. (ESRX)
- F5 Networks, Inc. (FFIV)
- Fastenal Company (FAST)
- First Solar, Inc. (FSLR)
- Fiserv, Inc. (FISV)
- Flextronics International Ltd. (FLEX)
- FLIR Systems, Inc. (FLIR)
- Garmin Ltd. (GRMN)
- Gilead Sciences, Inc. (GILD)
- Google Inc. (GOOG)
- Green Mountain Coffee Roasters, Inc. (GMCR)
- Henry Schein, Inc. (HSIC)
- Illumina, Inc. (ILMN)
- Infosys Technologies (INFY)
- Intel Corporation (INTC)
- Intuit, Inc. (INTU)
- Intuitive Inc. surgical (ISRG)
- Joy Global Inc. (JOYG)
- KLA Tencor Corporation (KLAC)
- Lam Research Corporation (LRCX)
- Liberty Media Corporation, series A interactives (LINTA)
- Life Technologies Corporation (LIFE)
- Linear Technology Corporation (LLTC)
- Marvell Technology Group, Ltd. (MRVL)
- Mattel, Inc. (MAT)
- Maxim Integrated Products (MXIM)
- Microchip Technology Incorporated (MCHP)
- Micron Technology, Inc. (MU)
- Microsoft Corporation (MSFT)
- Mylan, Inc. (MYL)
- NetApp, Inc. (NTAP)
- Netflix, Inc. (NFLX)
- News Corporation, Ltd. (NWSA)
- NII Holdings, Inc. (NIHD)
- NVIDIA Corporation (NVDA)
- O'Reilly Automotive, Inc. (Orly)
- Oracle Corporation (ORCL)
- PACCAR Inc. (PCAR)
- Paychex, Inc. (PAYX)
- Priceline.com, Incorporated (PCLN)
- Qiagen NV (QGEN)
- QUALCOMM Incorporated (QCOM)
- Research in Motion Limited (KIDNEY)
- Ross Stores Inc. (ROST)
- SanDisk Corporation (SNDK)
- Seagate Technology Holdings (STX)
- Sears Holdings Corporation (armored)
- Sigma-Aldrich Corporation (SIAL)
- Sirius XM Radio, Inc. (CRAB)
- Staples Inc. (SPLS)
- Starbucks Corporation (SBUX)
- Stericycle, Inc (SRCL)
- Symantec Corporation (SYMC)
- Teva Pharmaceutical Industries Ltd. (TEVA)
- Urban Outfitters, Inc. (URBN)
- VeriSign, Inc. (VRSN)
- Vertex Pharmaceuticals (VRTX)
- Virgin Media, Inc. (VMED)
- Vodafone Group, plc. (VOD)
- Warner Chilcott, Ltd. (WCRX)
- Whole Foods Market, Inc. (WFM)
- Wynn Resorts Ltd. (WYNN)
- Xilinx, Inc. (XLNX)
- Yahoo! Inc. (YHOO)
Sources: http://en.wikipedia.org/wiki/NASDAQ-100 - Image: http://ospreyflyer.blogspot.com/2010/06/nasdaq-100-index.html