NASDAQ Biotechnology Index

NASDAQ Biotechnology Index (NASDAQ: NBI) is a stock market index made up of securities of NASDAQ-listed companies classified according to the Industry Classification Benchmark as either the Biotechnology or the Pharmaceutical industry.

Overview

The NASDAQ Biotechnology Index was launched in 1993 and is calculated under a modified capitalization-weighted methodology. This methodology is designed to ensure that the largest companies are not overly represented in the Index. The Index is reviewed annually and is re-ranked on a quarterly basis.

Eligibility Criteria

To be eligible for inclusion in the NASDAQ Biotechnology Index, a security must meet the following criteria:

• Be listed on the NASDAQ Stock Market.
• Be classified as either a Biotechnology or Pharmaceutical company.
• Have a minimum market capitalization of $200 million.
• Have an average daily trading volume of at least 100,000 shares.

Components

The NASDAQ Biotechnology Index is made up of a diverse set of companies. These companies are involved in various aspects of the biotechnology and pharmaceutical industries, including the research, development, manufacturing, and marketing of products based on genetic analysis and genetic engineering.

Performance

The performance of the NASDAQ Biotechnology Index is closely watched by investors and analysts as a barometer of the health of the biotechnology and pharmaceutical industries. The Index has historically been volatile, reflecting the high-risk, high-reward nature of the biotechnology industry.

See Also

• NASDAQ
• Biotechnology
• Pharmaceutical industry
• Stock market index