Stock Question: QQQ vs NASDAQ?

[flot]

Can someone explain to me exactly how the "QQQ" ticker works vs the NASDAQ?

 

[Michael]

QQQ is a proxy for the NASDAQ. It is a unit share of a fund that holds NASDAQ shares in proportion to their makeup in the index.

MIchael

 

[PsychoAndy]

QQQ is the nasdaq 100, think of it like the dow 30, except with 100 nasd companies.

 

[AaronP]

yeah, its basically what you call a closed end mutual fund of the top 100 in the Nasdaq. Closed end mutual funds trade just like stocks, so you can buy and sell it just like you would IBM or GE.

 

[thebestMAX]

QQQ is at an all time low today (big surprise) Top 100 nasdac stocks held in a single equity like a mutual fund but easier to trade is correct.

I did buy some today but you better have a long term outlook (5-7 years) if you do. I have made a lot trading this one so far but this time I may have to sit on it awhile. Think it will still be up in 6-12 months.

 

[RC5Bri]

I'm thinking about buying QQQ and then writing a covered call against it for this Friday. I bet the stock would either plummet waaaaay dow, or skyrocket where it would have been more profitable without the call. I always feel like it is gambling.