Facebook (FB) Could Pop on This One Key NASDAQ Selling Point
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Shares of Facebook (Nasdaq: FB) are higher Friday following suggestions that joining the Nasdaq-100 might help the social media giant to boost its share value.
The NY Post notes that the transition for Facebook to the Nasdaq-100 is likely to happen in December. Because of the inclusion, which will start to happen when Nasdaq re-calibrates listings in October, more liquidity will be available for the stock.
Facebook's rapid inclusion in the Nasdaq-100 was a key selling point for Nasdaq in its battle to beat out peers (e.g. - the NYSE or BATS) for listing rights. Typically, firms have to be listed for a year before being considered for the exclusive club.
One big reason for a potential pop is exchange-traded funds (ETFs). Some ETFs are structured to mimic index movements, which means the percentage of holdings in a fund would need to be in the same proportion to what is in the tracked index. Due to the large size of ETFs, their scramble to re-allocate will lead to improved demand in Facebook shares.
Of course, notes the Post, it will make it easier to bet against the stock, too.
In early trading, Facebook is up about 1 percent on the anticipation.
The NY Post notes that the transition for Facebook to the Nasdaq-100 is likely to happen in December. Because of the inclusion, which will start to happen when Nasdaq re-calibrates listings in October, more liquidity will be available for the stock.
Facebook's rapid inclusion in the Nasdaq-100 was a key selling point for Nasdaq in its battle to beat out peers (e.g. - the NYSE or BATS) for listing rights. Typically, firms have to be listed for a year before being considered for the exclusive club.
One big reason for a potential pop is exchange-traded funds (ETFs). Some ETFs are structured to mimic index movements, which means the percentage of holdings in a fund would need to be in the same proportion to what is in the tracked index. Due to the large size of ETFs, their scramble to re-allocate will lead to improved demand in Facebook shares.
Of course, notes the Post, it will make it easier to bet against the stock, too.
In early trading, Facebook is up about 1 percent on the anticipation.
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