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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Johnny Canuck who wrote (87583)11/5/2021 12:22:30 PM
From: Return to Sender1 Recommendation

Recommended By
Sr K

  Read Replies (1) | Respond to of 95530
 
Selection criteriaThe NASDAQ has refined a series of stringent standards which companies must meet to be indexed. Those standards include:

en.wikipedia.org

  • Being listed exclusively on NASDAQ in either the Global Select or Global Market tiers.
  • Being publicly offered on an established American market for at least three months.
  • Having average daily volume of 200,000 shares.
  • Being current in regards to quarterly and annual reports.
  • Not being in bankruptcy proceedings.
Additionally, since 2014, companies with multiple classes of stock are allowed to have multiple classes included in the index, provided they meet NASDAQ's criteria. Prior to 2014, companies were limited to one class of stock in the index (usually the one with the larger market capitalization).[ citation needed]

Yearly rebalancing and re-rankingWhile the composition of the NASDAQ-100 changes in the case of delisting (such as transferring to another exchange, mergers and acquisitions, or declaring bankruptcy, and in a few cases, being delisted by NASDAQ for failing to meet listing requirements), the index is rebalanced once a year, in December, when NASDAQ reviews its components, compares them with those not in the index, re-ranks all eligible companies and makes the appropriate adjustments.[ citation needed]

There are two tools the NASDAQ uses to determine the market values of companies for the annual review:

  • Share Prices as of the last trading day in October.
  • Publicly announced share totals as of the last trading day of November.
Those components that are in the top 100 of all eligible companies at the annual review are retained in the index. Those ranked 101 to 125 are retained only if they were in the top 100 of the previous year's annual review. If they fail to move into the top 100 in the following year's review, they are dropped. Those not ranked in the top 125 are dropped regardless of the previous year's rank.[ citation needed]

The index also drops a company if, at the end of two consecutive months, it fails to have an index weighting of at least one-tenth of a percent. This can occur at any time.[ citation needed] Companies that are dropped are replaced by those with the largest market value that are not already in the index. Anticipation of these changes can lead to changes in the stock prices of affected companies.[ citation needed]

The index publicly announces all changes, regardless of when they occur, via press releases at least five business days before the change takes place. The 2018 results of the re-ranking and rebalancing were announced on December 14, with the changes effective the morning of December 24, coinciding with the expiration of options on December 21.



To: Johnny Canuck who wrote (87583)11/5/2021 12:30:50 PM
From: Return to Sender  Respond to of 95530
 
It does often feel arbitrary to me too but maybe it is not based upon the explanations given in the previous post and this one on the semiconductor index:

indexes.nasdaqomx.com

The PHLX Semiconductor Sector Index is designed to measure the performance of the 30 largest US-
listed semiconductor companies.