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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lee who wrote (16013)	2/2/2003 6:53:29 PM
From: Dan Duchardt	Respond to of 19219

I went to the "Listed Companies" tab and downloaded the full list of Nasdaq companies, 3838 of them. If COMPX is weighted purely by market capitalization (I think it is) then MSFT is 11.34% of the index, less than the NDX weight of 11.69% listed in your link. I also downloaded the NDX components nasdaqtrader.com An interesting thing about NDX is the inclusion of a healthy fudge factor shown as the "Depository Receipt Multiplier" (DRM) which is a fictitious number of shares for each stock used to adjust the Market Value weighting within NDX. This factor depresses the contribution of the big names like MSFT INTC CSCO DELL ORCL SUNW AMGN YHOO and inflates everything else. If you used the Market Capitalization numbers listed with COMPX without the DRM adjustment, the top 6 stocks in NDX would be 54.5% of the index. Here they are with the full weight and the adjusted weight Symb Full Adj MSFT 21.43 11.69 INTC 8.82 4.82 CSCO 8.16 4.71 AMGN 5.54 4.03 ORCL 5.35 3.44 DELL 5.20 3.03 Tot 54.50 31.72