Facebook to be part of Nasdaq 100 index
Facebook will become part of the Nasdaq 100 index of the largest non-financial companies listed on the electronic exchange, the market operator said Wednesday.
The news could be positive for the huge social network, which made its keenly anticipated market debut in May at $38 a share, then saw the stock price slide by more than 50 percent in subsequent weeks on concerns over its business model.
Being part of the index means a number of institutional and portfolio investors will purchase the stock for funds that seek to mirror the market index.
Facebook will also be part of the Nasdaq 100 Equal Weighted Index and the Nasdaq 100 Technology Sector Index.
Shares in Facebook were down 0.24 percent in midday trade at $27.39, representing a total market value of $59.4 billion.
(c) 2012 AFP