NASDAQ-100

The NASDAQ-100 (NDX) is a weighted index for 100 of the largest non-financial stocks traded on the NASDAQ stock market.

The NASDAQ-100 is not to be confused with the often-reported daily value of NASDAQ, which is comprised of more stocks than the index is.

A tracking stock, traded as "QQQ", was designed to be approximately 1/40th of the value of the underlying Nasdaq-100 (NDX) index. For example, the tracking stock QQQ traded at 143.44 at the close of the market on August 4, 2017, while the value of NASDAQ-100 (NDX) at that time was about 5,899.91 - roughly 41 times the value of QQQ.

An explanation of the tracking stock QQQ is as follows:[1]

“  |  The introduction of the Nasdaq-100 Index Tracking Stock (often referred to as QQQ) allows investors to purchase a share of stock in order to invest in the largest and most actively traded companies on The Nasdaq Stock Market-the companies of the Nasdaq-100 Index. Nasdaq-100 Index Tracking Stock now trades under the ticker symbol "QQQ." With Nasdaq-100 Index Tracking Stock, you can buy or sell shares in the collective performance of the Nasdaq-100 Index in a single transaction - just as you buy or sell shares of individual stocks. It's a one-investment portfolio that gives you ownership in the 100 stocks of the Nasdaq-100 Index. And because Nasdaq-100 Index Tracking Stock trades like stock, you can buy them on margin, sell short or hold your shares for the long term. When you purchase Nasdaq-100 Index Tracking Stock, you're investing in the Nasdaq-100 Trust, a unit investment trust that holds shares of the companies in the Nasdaq-100 Index. The Trust is designed to closely track the price and yield performance of the Index - so you can expect your Nasdaq-100 Index Tracking Stock to move up or down in value when the Index moves up or down.  |  ”

|
|

## References[edit]

1. ↑ https://www.cboe.com/products/stock-index-options-spx-rut-msci-ftse/options-on-nasdaq-indexes/ndx-tracking-stock-qqq