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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?


To: LastShadow who wrote (42032)12/12/2001 12:45:34 AM
From: AlienTech  Read Replies (1) | Respond to of 43080
 
It's been well documented that stocks the committee chooses to add to its big-cap index typically rise sharply in value from the day prior to the announcement to the close of the day the stocks join the index. But it's not well known that stocks subtracted from the index for reasons other than mergers or corporate spin-offs rise a lot more. And it's also not well known that the same effect occurs in the mid-cap and small-cap indexes.

moneycentral.msn.com

Except for BVSN which tanked like a rock after it got kicked in the shins.. But did go up 400% after wards.