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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?


To: Guy Gordon who wrote (2604)12/6/1999 4:21:00 PM
From: LBstocks  Respond to of 24042
 
General Guidelines for Adding Stocks to the S&P 500 Index
Market Value: The S&P 500 is a market-value weighted index. (See the top portion of this page for current market value levels.)
Industry Group Classification: Companies selected for theS&P 500 represent a broad range of industry segments within the U.S.economy.
Capitalization: Ownership of a company's outstanding common shares is carefully analyzed in order to screen out closely-held companies.
Trading Activity: The trading volume of a company's stock is analyzed on a daily, monthly, and annual basis to ensure ample liquidity and efficient share pricing.
Fundamental Analysis: Both the financial and operating condition of a company are rigorously analyzed. The goal is to add companies to the Index that are relatively stable and will keep turnover in the Index low.
Emerging Industries: Companies in emerging industries and/or new industry groups-industry groups currently not represented in the Index-are candidates for the Index as long as they meet the guidelines listed above.
General Guidelines for Removing Stocks from the S&P 500
Merger, Acquisition, LBO: A company is removed from the Index as close as possible to the actual transaction date.
Bankruptcy: A company is removed from the Index immediately after Chapter 11 filing or as soon as an alternative recapitalization plan that changes the company's debt/equity mix is approved by shareholders.
Restructuring: Each company's restructuring plan is analyzed in depth. The restructured company as well as any spin-offs are reviewed for Index inclusion or exclusion.
Lack of Representation: A company can be removed from the Index because it no longer meets current criteria for inclusion and/or is no longer representative of its industry group.

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