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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RE: Ah, the stock market.
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When you have a Clie shoved up your mouth, you can only talk in vowels.
RE: Ah, the stock market.
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.
RE: Ah, the stock market.
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.
I demand a recount!!
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!
RE: Palm can rebound!
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When you have a Clie shoved up your mouth, you can only talk in vowels.
When they get booted from the S&P 500...
Just like a college bragging about its students
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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Ah, the stock market.
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.