Where Does NASDAQ-100 Index Tracking Stock Come From?
How is NASDAQ-100 Index Tracking Stock created and redeemed? Most NASDAQ-100 Index Tracking Stock holders buy and sell in the secondary trading market. But units are initially created when they are issued by the Trust to an investor who, after placing an order, deposits with the trustee a specified number of shares of Index securities and cash corresponding to accumulated dividends, net of expenses, if any. While investors can trade in any amount of NASDAQ-100 Index Tracking Stock, it can only be created and redeemed from the Trust in “creation units” of 50,000 NASDAQ-100 Index Tracking Stock shares (or multiples thereof). What are “creation units?” A creation unit is simply a specified number of NASDAQ-100 Index Tracking Stock shares. A NASDAQ-100 Index Tracking Stock creation unit consists of 50,000 NASDAQ-100 Index Stock shares. NASDAQ-100 Index Tracking Stock can be created or redeemed only in aggregations of 50,000 NASDAQ-100 Index Tracking Stock shares (or multiples thereof). Who
