Frequently Asked Questions About the TSC New Tech 30

For more information about TheStreet.com's regular indices, please see Frequently Asked Questions About the TSC Internet Sector Index, Frequently Asked Questions About the TSC E-Finance Index and Frequently Asked Questions About the TSC E-Commerce Index.

What is TheStreet.com New Tech 30?

The TSC New Tech 30 index is intended to take the pulse of the so-called hot money in the tech sector. The index, first christened the Red Hot Index, tracks the performance of a group of stocks selected by TheStreet.com readers, staff and TSC columnist and co-founder James J. Cramer.

Cramer first unveiled the idea in a column in August 1999, and it garnered so much reader response that TSC decided to create an index using these particularly volatile stocks as a measure of the market's temperament. The Red Hot Index expanded to 30 stocks from 20 as of Dec. 31, 1999, and was renamed the TSC New Tech 30.

How is the TSC New Tech 30 different from TheStreet.com Internet Sector index, TheStreet.com E-Finance index and/or TheStreet.com E-Commerce index?

The TSC New Tech 30 is an index expressly created and tracked by TheStreet.com. Its daily quote is available here.

What is an index?

Similar to the S&P 500, the Dow Jones Industrial Average or the Russell 2000, the TSC New Tech 30 measures the average performance of a group of stocks. This index tracks the value of a certain basket of stocks, which are subject to change as TSC deems necessary to reflect the nature of the market.

Do any mutual funds or options track the TSC New Tech 30?

No index funds or options currently track this index.

What companies make up the TSC New Tech 30?

The TSC New Tech 30 is a market cap-weighted measure of these 30 stocks:

• Akamai Technologies (AKAM Quote)
• Ariba (ARBA Quote)
• BEA Systems (BEAS Quote)
• Broadcom (BRCM Quote)
• Broadvision (BVSN Quote)
• Brocade (BRCD Quote)
• CMGI (CMGI Quote)
• Commerce One (CMRC Quote)
• Copper Mountain Networks (CMTN Quote)
• Conexant (CNXT Quote)
• Exodus (EXDS Quote)
• Extreme Networks (EXTR Quote)
• Foundry Networks (FDRY Quote)
• FreeMarkets (FMKT Quote)
• Harmonic (HLIT Quote)
• Internet Capital Group (ICGE Quote)
• i2 Technologies (ITWO Quote)
• JDS Uniphase (JDSU Quote)
• Juniper Networks (JNPR Quote)
• Liberate Technologies (LBRT Quote)
• Network Appliance (NTAP Quote)
• Phone.com (PHCM Quote)
• PMC-Sierra (PMCS Quote)
• Qualcomm (QCOM Quote)
• QLogic (QLGC Quote)
• Red Hat (RHAT Quote)
• Redback Networks (RBAK Quote)
• RF Micro Devices (RFMD Quote)
• Sycamore Networks (SCMR Quote)
• VeriSign (VRSN Quote)

The index was originally created with 18 companies, but its fans demanded more. So Cramer, with assistance from his colleague Matt Jacobs, polled readers to see which two companies should be added to the index. As a result, Internet Capital Group and Harmonic were added to the Red Hots after the market closed Sept. 2, 1999.

Then, on Oct. 7, 1999, Foundry Networks replaced Net2Phone (NTOP Quote) in the Red Hots after another vote by TSC readers. Also, as Cramer promised, Sycamore Networks was added to the index after the close Oct. 28, replacing Gadzoox Networks (ZOOX Quote).

As of Dec. 31, 1999, 10 new stocks were added, bringing the index to 30 components. They are: CMGI (CMGI Quote), Commerce One (CMRC Quote), BEA Systems (BEAS Quote), RF Micro Devices (RFMD Quote), Broadvision (BVSN Quote), Network Appliance (NTAP Quote), Liberate Technologies (LBRT Quote), Akamai Technologies (AKAM Quote), i2 Technologies (ITWO Quote) and FreeMarkets (FMKT Quote).

This list of companies is subject to change at any time.

Does TheStreet.com recommend that I invest in the companies that make up the TSC New Tech 30?

TheStreet.com does not make investment recommendations of any kind. Additionally, the 30 companies that make up the TSC New Tech 30 are not necessarily better than companies that weren't included.

Performance of the TSC New Tech 30 is intended to reflect market volatility, and, as in many other sectors of the market, investing can pose substantial risks.