An index composed of the 100 largest, most actively traded U.S companies listed on the Nasdaq stock exchange. This index includes companies from a broad range of industries with the exception of those that operate in the financial industry, such as banks and investment companies. Taobiz explains Nasdaq 100 Index Individual investors are able to gain exposure to the Nasdaq 100 index by purchasing exchange-traded funds (ETFs) that are specifically designed to track its performance. The most popular of these ETFs is known as the QQQQ.
The equal-weighted version of the NASDAQ-100 Index, which consists of 100 of the largest, most actively traded non-financial U.S. companies listed on the Nasdaq. Each of the securities in this market-capitalization based index is initially set at a weight of 1%. The equal weighting means that the index's smaller companies contribute as much as its larger companies. Taobiz explains NASDAQ-100 Equal Weighted Index This equal-weighted index offers an alternative to market-capitalization weighting, which is a more common method of weighting index funds. The NASDAQ-100 Equal Weighted Index is rebalanced quarterly and is reconstituted annually in December. There are several ETFs that track the movements of the index.
An indicator of post-market sentiment and trading activity, calculated by measuring the after-hours price levels of stocks within the Nasdaq 100 and using the same methodology as that used to create the Nasdaq 100 during regular trading sessions. Because some stocks may not be trading in the after-hours session, their prices will remain at the daily close when calculating the Nasdaq 100 after-hours indicator. Taobiz explains Nasdaq-100 After Hours Indicator Indicators of after-hours activity can be hard to come by and decipher, but in recent years the sheer rise in volume has made evaluating after-hours trading easier. For investors looking to place trades in the after hours markets, it is still always advisable to use limit orders, as trading levels are often thin in specific stocks. Typical after-hours trading sessions run from 4pml 6:30pm Eastern Standard Time for the Nasdaq 100.
The Nasdaq equity market for companies that have relatively small levels of market capitalization. Listing requirements for such "small cap" companies on the Nasdaq SmallCap Market are less stringent than for other Nasdaq markets that list larger companies with significantly higher market capitalization. In 2005, the Nasdaq SmallCap Market was renamed the Nasdaq Capital Market in order to reflect its core function of raising capital. Taobiz explains Nasdaq SmallCap Market The Nasdaq Capital Market makes it relatively easier for early-stage companies to get listed compared to other senior exchanges with more onerous requirements. In order to list initially on the Nasdaq Capital Market, companies must meet all of the criteria under at least one of three listing standards - the equity standard, the market value of listed securities standard, or the total assets/total revenue standard.
A market-capitalization weighted index made up of the 100 largest companies listed on the NASDAQ OMX group exchanges in the United States and the Nordic countries. This index tracks large growth stocks across a broad range of sectors, with the Nasdaq's emphasis on innovation, technology, growth and globalization. Taobiz explains NASDAQ OMX 100 Index The NASDAQ OMX 100 Index was introduced in March 2008. It is designed to be a global index and is disseminated in both dollars and euros. It is calculated in real time. Some of the stocks listed on the exchange are Amazon, Apple, Cisco, Danske Bank and NVIDIA.
A process in which both the purchase price and the offering price for a new issue are negotiated between the issuer and a single underwriter. Taobiz explains Negotiated Underwriting The underwriter pays the issuer a purchase price, and the public pays the offering price. The spread between the purchase price and the public offering price represents the proceeds to the underwriter.
The phenomenon of less-known firms producing abnormally high returns on their stocks. Taobiz explains Neglected Firm Effect Neglected firms are usually the smaller firms that analysts tend to ignore. Information available on these smaller companies tends to be limited to those items that are required by law, such as the 10-K. Blue-chip firms, on the other hand, have a higher profile, which provides large amounts of high quality information (in addition to legally required forms) to institutional investors such as pension or mutual fund companies. The abnormally high return exhibited by neglected firms may also be due to the lower liquidity or higher risks associated with the stock.
An obligation of NYSE specialists to remain on the sidelines and refrain from acting as principal when there is sufficient market demand and supply to efficiently match orders. Taobiz explains Negative Obligation The negative obligation ensures that specialists are not getting involved in the market on their own behalf when the market is able to "make itself" and sufficiently match buyers with sellers. This obligation on the specialists provides the public with the opportunity to transact with each other without specialist intervention.