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Karachi stock exchange-100 index vs NASDAQ 100 index

Karachi Stock Exchange 100 Index is an index which compares rates on the Pakistan Stock Exchange  over the years. This index consists of 100 top companies from the total companies registered ion the stock exchange. Companies are included on this index ,according to their market capitalization.

Here is the  analysis of Karachi Stock Exchange 100 Index:

  • The power, telecom, & energy sector mostly performed well in Karachi Stock Exchange 100 Index and most of the investors show their interest in these shares.
  • According to the featured reports in the news and available online, low interest rates will help index to rise up in upcoming days.
  • Cement sector is also the best for the investors, it has have given great output in construction projects in the country. It has huge scope for the investors, especially after the start of CPEC.

NASDAQ-100 index

The NASDAQ-100 index is an index which consists of 100 stable companies. All these companies are listed on the NASDAQ stock exchange and their inclusion is dependent on their market capitalization. The companies related to computer hardware, computer software, networking, telecommunication, whole sales, retailing, biotechnology, pharmacy etc. The NASDAQ-100 index does not include the financial companies or investment companies.

An investment in Power shares QQQ is supposed to be made by keeping in mind that the Nasdaq-100  can’t always commutate the exact performance of the Index. The reason behind is that the total return which is generated by the stocks will be decreased by the transaction costs in managing the real balance of the stocks and other expenditures, and this transaction is not included in the measurement of index. There might a possibility that the Trustwill not commutate the exact performance of the index , it is just because of the unavailability of certain index securities due to some other circumstances in the secondary market for a short time period. Such type of events are unusual to continue for long time period, because the Trust is supposed to correct such imbalances. The purpose of the Trust is to provide the investment results that is usually correspond to the yield performance of the index, so there is no grantee that the investment`s result can be exactly computed.

Here are some of the tips of joining NASDAQ 100 index:

  • To join in the Index, an Index Security should be displayed on the Nasdaq Global Market
  • To join the index, there is no any minimum market capitalization requirement; selection will be announced based on the top 100 largest issuers based on market capitalization that will fulfill all the joining requirements.
  • Each security must have at least 3 months average daily trading volume out of 2000 shares The average daily trading volume is obtained by taking average of the sum& product ofthe trading volume of daily security, for each day & for the last 3 months.

 

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About Emaad Qureshi