Will The Move To NASDAQ 100 On December 12 Matter?
I'm not clear on the rules here and I've been seeing conflicting info all over the place... Are NASDAQ 100 index funds obligated to buy FB shares once it enters the index? Also, if they ARE obligated, do they have to wait until December 12 or are they allowed to be buying shares before then?
Depending on the answers to these questions, the 12th could either be a big day for longs and traders or a total non-event. What do you think will happen?
U may have mixed QQQ with the Nas-100.
Nas-100 stocks can be bought anytime by anyone.
QQQ mimics the Nasdaq. The governance of QQQ buy and sell some stocks to simulate the Nasdaq. But the stocks to buy may not have direct relationship with the Nasdaq stocks. They pick something to do the trick.
FB may not be involved at all.
Any fund can buy at any time. Most of the funds knew about the inclusion of FB at the time of the ipo. Nasdaq actually changed the rules of time to allow FB to be included. This was suppose to be to woo FB to Nasdaq. There will be some funds that buy but many funds have already bought that is why the news did not generate a huge upward draft.