Facebook Doesn’t Make Cut For Nasdaq 100 Index, But Will Be Added To Nasdaq Q-50 Index

Nasdaq announced that Facebook will not yet be included in its Nasdaq 100 Index, but the news was not all bad for the social network, as it will be added to the Nasdaq Q-50 Index Sept. 24, bringing it one step closer to the Nasdaq 100.

Being added to the Nasdaq 100 is important to companies because it ensures that exchange-traded funds must own their stocks to maintain their benchmarks.

The stock exchange described the two indices as follows:

The Nasdaq Q-50 Index is a market-capitalization-weighted index designed to track the performance of securities that are next-eligible for inclusion into the Nasdaq 100 Index. The Index is comprised of 50 securities ranked by market capitalization and reflects companies across major industry groups, including computer hardware and software, telecommunications, retail/wholesale trade, and biotechnology. It does not contain securities of financial companies, including banking and investment companies, as these are ineligible for Nasdaq 100 Index inclusion.

The Nasdaq 100 Index includes 100 of the largest domestic and international nonfinancial securities listed on the Nasdaq stock market based on market capitalization. The Index reflects companies across major industry groups, including computer hardware and software, telecommunications, retail/wholesale trade, and biotechnology. It does not contain securities of financial companies, including investment companies.

According to reports, Facebook could be added to the Dow Jones Internet Composite Index by Friday.

Other companies that will join Facebook on the Nasdaq Q-50 Sept. 24 are: Groupon, Concur Technologies, Mellanox Technologies, NXP Semiconductors, Onyx Pharmaceuticals, Royal Gold, TW Telecom, and Western Digital.

Readers: Do you think Facebook’s stock price will bounce back enough for eventual addition to the Nasdaq 100?

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