The Nasdaq is set to announce changes to its Nasdaq-100 Index on Friday, which could have significant implications for certain companies and their shareholders. The reconstitution process involves adding or removing companies from the index, a change that can impact fund performance.
Companies that are added to the index will see increased buying power, as large funds that track the index will purchase their shares. Conversely, companies that exit the index may see an increase in share sell-offs as these funds reduce their holdings.
While some investors may be concerned about potential market fluctuations, others recognize the importance of the Nasdaq-100 Index in determining fund performance and investment decisions. As such, the upcoming changes are likely to be closely watched by industry professionals and individual investors alike.
Source: https://www.marketwatch.com/story/upcoming-nasdaq-100-changes-could-boost-the-stocks-of-these-11-companies-12095eea