For those who heavily invested in SMCI, just be aware that this company “MIGHT” be dropping off from NASDAQ 100 December 13. If you do not know what it will do to the stock, then do some research!
Here are the Benefits of Being in the Nasdaq 100
1.Index Fund Buying Pressure:The Nasdaq-100 is tracked by numerous index funds and ETFs like the Invesco QQQ (QQQ). When a stock is added, these funds must buy the stock to replicate the index, creating significant demand pushing the price higher.
2.Increased Visibility and Credibility:Inclusion in the Nasdaq-100 signals that the company is among the largest and most influential in the Nasdaq exchange. This increases investor confidence and attracts more attention from retail and institutional investors.
3.Improved Liquidity:Stocks in major indices tend to see higher trading volumes. This improved liquidity makes the stock more attractive to large institutional investors, which can also drive the price higher.
4.Momentum Effect:Stocks that join a major index often benefit from a positive momentum effect. Investors may perceive the inclusion as a signal of strong fundamentals or future growth potential.
# This is not guaranteed! but it is best to be aware of guys! All the best… I hope everyone makes lots of money!
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