NASDAQ 100
The NASDAQ 100 is the main index for the NASDAQ Stock Exchange. It is made up of the top 100 stocks on the exchange and does not include any financial companies or investment companies.
It is calculated as a weighted average in that some indexes affect its value more than others. Essentially bigger companies are more heavily weighted but some modification to the weighting is made to keep the large companies from completely overwhelming the smaller ones.
When investigating the NASDAQ 100 it is interesting to remember that it is made up of relatively new stocks. The oldest would only be about 25 years old but have proved themselves to dominate the market. This can be useful if you want to hold a portion of your investments in high tech companies.
However, it is important to remember that because of it’s heavy weighting in this financial area - the NASDAQ 100 can be very volatile.
Some companies that are included in the NASDAQ 100 are Apple Computer Inc (AAPL), Dell Inc (DELL), eBay Inc (EBAY) and Microsoft Corporation (MSFT).
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