"The Nasdaq stock exchange is typically the destination of choice for technology companies looking to go public. It offers lower listing fees than the New York Stock Exchange, in addition to a smoother listing process with fewer barriers, so it's ideal for rapidly growing, early-stage companies. The Nasdaq-100 is an index of 100 of the largest non-financial companies listed on the Nasdaq, and given the nature of the exchange, it features a very high concentration of technology names."
"Many of them operate at the forefront of high-growth industries like artificial intelligence (AI), cloud computing, digital advertising, and more, driving the Nasdaq-100 to much higher annual returns than the more diversified S&P 500 (SNPINDEX: ^GSPC). The Invesco QQQ Trust (NASDAQ: QQQ) is an exchange-traded fund (ETF) that tracks the performance of the Nasdaq-100 by holding the same stocks and maintaining similar weightings."
The Nasdaq exchange attracts technology companies for IPOs because of lower listing fees and a smoother listing process with fewer barriers. The Nasdaq-100 comprises 100 of the largest non-financial Nasdaq-listed companies and is heavily weighted toward technology names. High-growth sectors such as artificial intelligence, cloud computing, and digital advertising drive stronger returns for the Nasdaq-100 compared with the more diversified S&P 500. The Invesco QQQ Trust (QQQ) mirrors the Nasdaq-100 by holding the same stocks with similar weightings. The ETF’s top five holdings account for a substantial portion of its portfolio, amplifying tech concentration.
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