Dear Sir , if I buy a share in Nasdaq 100, does that mean that I actually own a small share stock in each of it's companies ? Does the money I pay go towards funding these companies ?
@Yahya_medic. When you buy a share of QQQM the Nasdaq 100 ETF you own a piece of all the companies in the Nasdaq 100 Index. The money you pay does not go to funding these companies it goes to buy the shares from the current owners of the shares. The funding of the companies occur during the initial public offering.
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Dear Sir , if I buy a share in Nasdaq 100, does that mean that I actually own a small share stock in each of it's companies ? Does the money I pay go towards funding these companies ?
@Yahya_medic. When you buy a share of QQQM the Nasdaq 100 ETF you own a piece of all the companies in the Nasdaq 100 Index. The money you pay does not go to funding these companies it goes to buy the shares from the current owners of the shares. The funding of the companies occur during the initial public offering.
No you just own the index. Think of it as a thing separate to the companies it holds.