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nasdaq 100 index

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Financial Dictionary

Nasdaq 100 Index

An index composed of the 100 largest, most actively traded U.S companies listed on the Nasdaq stock exchange. This index includes companies from a broad range of industries with the exception of those that operate in the financial industry, such as banks and investment companies.

Investopedia Commentary

Individual investors are able to gain exposure to the Nasdaq 100 index by purchasing exchange traded funds (ETFs) that are specifically designed to track its performance. The most popular of these ETFs is known as the QQQQ.

Related Links

Index Investing Tutorial
Trading The QQQQ With In-The-Money Put Spreads
Getting to Know Stock Exchanges

See also: Exchange-Traded Fund - ETF, Index, Nasdaq, QQQQ

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Financial Dictionary

Nasdaq 100 Index

A market-capitalization-weighted index of the largest and most active nonfinancial domestic and international issues listed on the Nasdaq Stock Market. The index was launched in 1985 to represent Nasdaq's largest companies across major industry groups. See also QQQ.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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