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Technology Stocks : METROMEDIA FIBER NETWORK (MFNX)

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To: Ron Kline who wrote (742)12/16/1999 5:38:00 PM
From: Dennis O'Bell  Read Replies (1) of 1983
 
Q: When a stock is added to an index, do the index funds have
to re-adjust all their holdings by the very date posted
(20 December, in this case?)

A really big fund, such as the Vanguard 500 would generate a
huge volume if they had just one week to do the conversion.

I admit I don't even know which funds are indexed on NASDAQ-100.

I also don't have a clue exactly how the market makers really
"accomodate" such large movements of stock, at least on NASDAQ
when it's precisely the NASDAQ index which is changing!
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