Tuesday, 24 February 2009

Eligibility for inclusion in S&P 500 needs to be lowered


An interesting look at the market capitalization of the S&P 500 is provided in the following article
In the table, we summarize the number of stocks in each sector that currently do not meet the $3 bln market cap threshold to be eligible for inclusion in the S&P 500. In the Consumer Discretionary sector, over 40% of the stocks currently have market caps of less than $3 bln. For the index as a whole, nearly 27% of the stocks that are currently in the index would not be eligible for inclusion if they were being considered today.

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