Palm Removed from Nasdaq-100
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%.
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- I got one -Tuckermaclain
- RE: Don't we have this already? -Tuckermaclain
- RE: Palm brand will return in 2018, with devices built by TCL -richf
- RE: Palm brand will return in 2018, with devices built by TCL -dmitrygr
- Palm phone on HDblog -palmato
- Palm PVG100 -hgoldner
- RE: Like Deja Vu -PacManFoo
- Like Deja Vu -T_W