The Nasdaq 100 is based on a “modified capitalization methodology”. This method considers individual weights of the companies in the index according to their market value based on shares of stock. Nasdaq reviews the composition of the index quarterly, adjusting weightings if distribution requirements are not met. Additionally, every December the NDX re-ranks to ensure that the largest companies in the NASDAQ are included. This is more frequent than other indexes such as the S&P 500 and Dow Jones Industrial Average.null