š„#MicroStrategyJoinsNasdaq100
Step By Step Formula For Binance Micro Strategy š„
Step By Step Formula
Step 1: Understanding the Nasdaq-100 Index
The Nasdaq-100 Index comprises the 100 largest non-financial companies listed on the Nasdaq Stock Market.
These companies are selected based on market capitalization and must meet specific eligibility criteria.
Step 2: Meeting Eligibility Criteria
To be considered for inclusion, a company must meet the following conditions:
Listing Requirements
Be listed exclusively on the Nasdaq Stock Market.
Be classified as a non-financial company (financial companies are excluded from this index).
Market Capitalization
The company must rank among the top 100 Nasdaq-listed companies in terms of market capitalization.
Market capitalization is calculated as: MarketĀ Cap=StockĀ PriceĆOutstandingĀ Shares\text{Market Cap} = \text{Stock Price} \times \text{Outstanding Shares}MarketĀ Cap=StockĀ PriceĆOutstandingĀ Shares
Liquidity Standards
The stock must meet liquidity thresholds, such as minimum average daily trading volume.
Seasoning Rules
Newly listed companies need to trade on Nasdaq for a certain period (e.g., three months).
Transparency and Reporting
Must comply with SEC (Securities and Exchange Commission) reporting standards.
Step 3: Annual Rebalancing Process
Evaluation
Nasdaq conducts an annual evaluation of all eligible companies in December.
Companies are ranked by market capitalization based on share prices and total outstanding shares as of the evaluation date.
Selection
The top 100 eligible non-financial companies are selected.
Companies falling below a certain rank (e.g., 125th place) may be removed from the index.
Notification
Selected companies are notified ahead of the rebalancing.
Step 4: Announcement and Addition
Once selected, the company is publicly announced as a new member of the Nasdaq-100 Index.
For MicroStrategy, this would mean investors can now see it represented in ETFs and other financial products tied to the index.
