NDAQ - Why Nasdaq Stock Sank on Wednesday
2024-03-20 18:42:53 ET
Several key Nasdaq (NASDAQ: NDAQ) key trading indexes landed in positive territory Wednesday. Funnily enough, we can't say the same about its stock. Nasdaq shares lost more than 2% of their value across that trading session, because of news that a major stockholder unloaded some of its holdings. That 2%-plus loss was in marked contrast to, for example, the Nasdaq Composite index, which rose by more than 1%.
Shortly after market closed on Tuesday, Nasdaq and Borse Dubai announced that the latter company had launched a secondary offering of Nasdaq's common stock. The U.A.E.-based exchange operator is selling just under 27 million shares of its American peer and has granted the sale's underwriters a 30-day option to purchase an additional 4 million-plus shares.
As is customary in secondary sales, Nasdaq stressed that it will receive no proceeds from the issue, as it is not the selling party.
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Why Nasdaq Stock Sank on Wednesday