SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : EDS - Recent pullback a buy opportunity???

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Daniel Liberty who wrote (1114)8/6/1998 9:07:00 PM
From: Daniel Liberty   of 1841
 
Trying to figure out how many shares the index funds will buy after EDS is part of the S&P 500. Does this example seem right?

The Vanguard S&P500 index fund (VFINX) has 49 billion dollars in assets and is the largest.

I figure that with EDS capitalized at 18 billion dollars they will constitute approximately .22% of the weighted average of the S&P500. If that is true then Vanguard must purchase $107,000,000 worth of EDS stock or about 2.9 million shares. All the other index funds will have to rebalance as well.

Can anyone verify this? Does anyone know how long the funds will have to rebalance themselves?

This could be a big boost to the stock.
Dan
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext