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    Palm Removed from Nasdaq-100Posted By: Ed on Monday, December 17, 2001 10:14:57 AM
The Nasdaq Stock Market announced today its annual re-ranking of the Nasdaq-100 Index and several technology companies, including Palm Inc., have been removed. This index is made up of the 100 largest non-financial stocks listed on Nasdaq. With the bursting of the tech bubble, the market capitalization of many tech companies have dropped precipitously causing several of them to no longer qualify. Other well-known companies being removed from the list include CNET Networks, 3Com, Novell, and RealNetworks. The Nasdaq-100 shouldn't be confused with the Nasdaq Composite Index, which is the one commonly meant to when people refer to "The Nasdaq". It measures all Nasdaq domestic and non-US based common stocks, not just the 100 largest. "The re-ranking is based on a number of objective criteria with market capitalization a key factor," said John L. Jacobs, president and chief executive officer of Nasdaq Financial Products Services Inc., a subsidiary of Nasdaq. "We re-rank the index every year at this time and it is based on the number of shares outstanding and stock price. It reflects the current economy." The Nasdaq-100 is tied to the Nasdaq-100 Index Tracking Stock, which allows investors to buy or sell shares in the collective performance of the Nasdaq-100 Index in a single transaction. It is an exchange-traded fund that trades like a stock and is the world's most actively traded ETF. On most trading days, it is also the second most actively traded security in the U.S. So far, this announcement hasn't been good for Palm's share price, which has dropped close to 4%. Related Information: More Stories Like This...  Palm Discontinues the WebPro Browser Proxy New Palm Accessory EOL Notifications Centro is the Summers 4th Most Popular Smartphone Unlocked Treo Pro Now Shipping Treo Pro Now Available from Vodafone Palm Q1 FY09 Conference Call Highlights More articles about Palm
Article Comments
14 total comments The following comments are owned by whoever posted them. PIC is not responsible for them in any way. login or register for free in order to post comments.  RE: Ah, the stock market.
Except they don't just remove them without a reason. If a company is delisted from a certain index, there are reasons. And if an index sees that their current value isn't good enough for the index, it gets people to think that maybe...just maybe the company isn't what we think it is. Look at the companies that are removed. Novel...not exactly something you want the nasdaq to represent. A company that is a spec of what it once was. Realnetworks, a joke from the getgo. Their business plan was good until M$ got in there. And cnet who's profits are based on advertising. All the removing from an index shows is that this company is just not what investors should invest in right now. --------------------------------------- When you have a Clie shoved up your mouth, you can only talk in vowels. RE: Ah, the stock market.I.M. Anonymous @ 12/17/2001 11:14:05 AM #
Investing is not really legalized gambling, however, speculation is. One of the reasons why we have a stock market is to give companies access to capital from investors so that they grow their businesses, and hopefully, provide good return on investment. Over the decades, the stock market, in general has returned about 8-10% per year to investors, while, various forms of gambling all have a negative agregate return. So, to equate the two is naive, at best. RE: Ah, the stock market.I.M. Anonymous @ 12/17/2001 11:38:44 AM #
The price of Palm shares will probably go down, however, not because of the reason outlined above. The price is the price whether or not something is in the Nasdaq-100 or not. However, there is a lot of indexing going on where index funds must buy and sell stock based on whether it is listed in the index or not. So, there are index funds that must sell these shares now that Palm is not part of the Nasdaq 100. RE: Ah, the stock market.I.M. Anonymous @ 12/17/2001 12:08:11 PM #
Forget the meaningless list. Palm will close up today. A lot of folks are looking to take advantage of this 'early Xmas sale'. Sure to double your money on this one within 6 mths. RE: Ah, the stock market.
Original poster, you obviously don't know anything about the stock market. Yes, I guess you could say it is gambling, but you are looking at, as a previous poster said, an average 8-10% return. You obviously don't know how the stock market works. And to say it is worse than gambling is malarky.
 I demand a recount!!I.M. Anonymous @ 12/17/2001 11:39:59 AM #
They must have forgotten to take the additional $.091 /share price of Be Inc that they bought in to account... Seriously, many of these tech stocks should have been delisted from the NSADAQ by now.
Palm can rebound!I.M. Anonymous @ 12/17/2001 12:39:01 PM #
All we need are some red/white & blue faceplates for the m100! RE: Palm can rebound!
The rainbow palm?
--------------------------------------- When you have a Clie shoved up your mouth, you can only talk in vowels.
When they get booted from the S&P 500...I.M. Anonymous @ 12/17/2001 6:55:42 PM #
things will be ugly.
Just like a college bragging about its students
A lot of colleges only want to bring in the best and brightest students so they can brag about "how bright their students are!" - No, they were bright when you let them in... They would have excelled anywhere.
This is the same thing. The Nasdaq 100 will bring in a better performing stock, the Nasdaq 100 will go up, and they will somehow take credit for being so wonderful. Hot Air.
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Actually it is worse, and this is a perfect example. Palm's stock value goes below a certain value on a certain date and so they are removed from a meaningless list, and as a result being removed from the list, their stock value drops even further.