When a stock is included into a stock index, such as the S&P500, its price tends to
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When a stock is included into a stock index, such as the S&P500, its price tends to jump up both on the announcement day and on the day when the inclusion occurs. Why? Question 10 options: This is due to the buying pressure from index mutual funds and ETFs. Inclusion into an index is a signal for good news for the stock's fundamentals. A stock tends to become more liquid after it is included in an index.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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