Nasdaq-100 Index Tracking Stock
- QQQQ
Symbol:
QQQQ
Product
Description:
Nasdaq-100 Index Tracking Stock (QQQQ)
represents undivided ownership
interests in the portfolio of stocks
held by the Nasdaq-100 Trust. The
Trust holds all of the common stocks
of the Nasdaq-100 Index®
and is intended to provide
investment results that, before
expenses, generally correspond to
the price and yield performance of
the Index.
Index Components
Administration:
The Nasdaq-100 Trust is sponsored by
Nasdaq Investment Product Services,
Inc., a wholly owned subsidiary of
the Nasdaq Stock Market, Inc. The
trustee is The Bank of New York, and
the distributor is ALPS Mutual Funds
Services, Inc.
Trading Unit:
A round lot is 100 shares. Odd lots
(i.e., fewer than 100 shares) may
trade as well.
Price Quotations:
Prices are quoted in dollars and
cents with a minimum increment of
$0.01 (a penny).
Settlement of
Trades:
Three business days. All Nasdaq-100
Index Tracking Stock shares are held
in book-entry form only at The
Depository Trust Company (DTC).
Dividends and
Distributions:
If the dividends collected by the
Nasdaq-100 Trust exceed Trust
expenses during a quarter,
Nasdaq-100 shares will pay a
pro-rata cash distribution equal to
accumulated dividends less expenses.
Distributions (if any) will be paid
quarterly, on the last business day
of April, July, October, and
January.
Net Asset Value:
NAV represents the aggregate closing
market value of the underlying
portfolio of Nasdaq-100 (normally 3
p.m. Chicago time) securities in the
Nasdaq-100 Trust, plus portfolio
cash and any accrued dividends and
minus accumulated Trust expenses on
a pro-rata basis.
Initial Customer
Margin and Short Sales:
Regulation T-margin requirements for
exchange traded securities apply.
Long positions require 50 percent
margin; short positions require 150
percent margin. QQQQ shares may be
sold short on a downtick at any time
during trading hours.
Creations and
Redemptions:
Nasdaq-100 Index Tracking Stock
shares can be created at NAV in
"creation unit" block sizes (50,000
shares) by the deposit of a
specified portfolio of stock closely
approximating the composition of the
relevant index and a specified
amount of cash. Conversely, a
creation unit (50,000 shares) can be
redeemed at NAV for a specific
portfolio of stocks and a specified
cash amount. The shares of component
stocks in a "creation unit" are
determined by the trustee prior to
the opening of trading each business
day. The required cash amount is
determined on the same day following
the close of trading.
Trading Hours:
8:30 a.m. - 3:15 p.m. Central Time
(Chicago time).
