What Is the NASDAQ-100?


Quick Answer

The NASDAQ-100 is an index of 100 domestic and international companies with above-average market capitalizations, according to NASDAQ. The index does not include financial companies such as Goldman Sachs or Morgan Stanley.

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Full Answer

The NASDAQ-100 calculation model focuses primarily on the market capitalization of each company. Therefore, companies listed on the index are larger companies within industries such as technology, hardware, telecommunications and retail/wholesale. Companies listed on the index must have an average trading volume of 200,000 shares or more per day. Companies must also generate more than $1 billion dollars annually. If at any time a company falls below the criteria required to remain on the index, NASDAQ immediately removes the company from the index, explains NASDAQ.

Some well-known companies currently listed on the NASDAQ-100 include Apple, Applied Materials, DISH Network, eBay and Starbucks. As of 2015, Apple has the largest market capitalization of any company listed on the index at $700 billion. Apple has an average daily volume of 40.5 million shares traded per day, and price fluctuations in its stock price move the index higher or lower throughout the course of the trading day. On the NASDAQ index as a whole, Apple’s stock price can move the index by 121 basis points and has, at times, moved the NASDAQ-100 index by 141 points, reports CNBC.

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