Nasdaq-100 Index Tracking Stock - QQQ
Nasdaq-100 Index Tracking Stock (QQQ) 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.
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.
A round lot is 100 shares. Odd lots (i.e., fewer than 100 shares) may trade as well.
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. QQQ 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.
8:30 a.m. - 3:15 p.m. Central Time (Chicago time).
631 100 104