Waterloo-based Research In Motion will be removed from the Nasdaq 100 at the end of this year, the stock market index announced this week.
The index includes the 100 largest non-financial stocks listed on the Nasdaq stock market. This means a variety of companies are being added and removed to keep the index up to date. Facebook is the most notable addition to the index, at least among techies. Other additions include Analog Devices, Catamaran Coproration, and Liberty Global.
Of course, for each addition there must be a removal. For Canadians, the most notable removal is that of RIM. Other technology companies to say goodbye include Electronic Arts and Netflix, as well as Marvell Technology Group and VeriSign.
"Since its inception, the Nasdaq-100 Index has evolved into a world-renowned brand that includes the 100 largest non-financial stocks listed on The Nasdaq Stock Market," said Nasdaq OMX Executive Vice President John L. Jacobs. "The securities being added to the Nasdaq-100 Index will join Facebook, Costco, Apple, Google and other household names that are leading the new economy forward. Our objective re-ranking process ensures the Nasdaq-100 remains a relevant investable index that is the underlying benchmark for about 7,100 products in 22 countries with a notional value of about $1 trillion."
The Nasdaq 100 launched in 1985 and has returned 2,040% since inception on a cumulative price return basis. It is adjusted once annually.