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How is NASDAQ-100 Index Tracking Stock created and redeemed?

April 26, 2017index nasdaq-100 redeemed stock

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How is NASDAQ-100 Index Tracking Stock created and redeemed?

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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).