Every year in the early weeks of December, the Nasdaq announced changes to one of the most popular indexes in the world, the Nasdaq 100 ($NDX).
The index is comprised of the 100 largest non-financial companies listed on the Nasdaq Market. The Nasdaq Financial 100 index is comprised of the largest financial companies on the exchange.
The Nasdaq 100 Index is one of the most replicated indexes by mutual funds and various exchange traded funds (ETFs). Between the two forms of index investing, there are hundreds of funds tracking the performance of the Nasdaq 100. This is one of the reasons that it is very beneficial for a company to be included in the Nasdaq 100 Index.
This post originally appeared at Money Morning.