NEW YORK, The Nasdaq Stock Market, Inc. announced the annual re-ranking of the NASDAQ-100 Index(r), effective with the market open on Monday, December 24, 2007.
"The NASDAQ-100 Index is a diverse, world-renowned benchmark comprised of many of the world's largest growth companies," stated NASDAQ Executive Vice President John L. Jacobs. "It is the basis of more than 580 products in 37 countries. Although the components of the NASDAQ-100 Index are determined by an open, objective, and rules-based process -- they are ultimately chosen by investors."
The following five issues will be added to the NASDAQ-100 Index: Hologic, Inc. (Nasdaq:HOLX), Focus Media Holding Limited (Nasdaq:FMCN), Hansen Natural Corporation (Nasdaq:HANS), Steel Dynamics, Inc. (Nasdaq:STLD), Stericycle, Inc. (Nasdaq:SRCL).
The NASDAQ-100 Index is composed of the 100 largest non-financial stocks on The NASDAQ Stock Market(r) and dates to January 1985 when it was launched along with the NASDAQ Financial-100 Index(r), which is comprised of the 100 largest financial stocks on NASDAQ(r). These indexes were originally designed to segment NASDAQ into two major industry groups to support media coverage and to act as benchmarks for financial products such as options, futures, and funds. The NASDAQ-100 is re-ranked each year in December, timed to coincide with the quadruple witch expiration Friday of the quarter.
On a cumulative price return basis, the NASDAQ-100 Index has risen over 1571% since inception, and it has outperformed several major domestic and international stock indexes for the ten-year period ended November 30, 2007, although past performance is not indicative of future performance. For the most recent one, five, and ten-year periods ended November 30, 2007, the cumulative return of the NASDAQ-100 Index was 16.63%, 87.18%, and 98.87%, respectively.
The NASDAQ-100 Index is the basis of the PowerShares QQQ Trust (Nasdaq:QQQQ), which aims to provide investment results that, before expenses, correspond with the NASDAQ-100 Index performance. In addition, options, futures and structured products based on the NASDAQ-100 Index and the PowerShares QQQ Trust trade on various exchanges.
As a result of the re-ranking of the NASDAQ-100 Index, the following five companies will be removed: LM Ericsson Telephone Company (Nasdaq:ERIC), Patterson-UTI Energy, Inc. (Nasdaq:PTEN), Ross Stores, Inc. (Nasdaq:ROST), Sepracor Inc. (Nasdaq:SEPR), XM Satellite Radio Holdings Inc. (Nasdaq:XMSR).
NASDAQ is the largest U.S. equities exchange. With approximately 3,100 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. It is home to companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology.