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 Post subject: 1/3rd of Stocks don't belong on the S&P 500
PostPosted: 20 Nov 2008, 12:12 
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Twenty-five stocks, or five percent of the index, don't make the $1 billion mark in market cap, and just 11 exceed the $100 billion level.

In fact, a third of the entire index is not even qualified to be in the index -- 186 stocks have market caps under $4 billion, the minimum value for consideration for S&P 500 membership.


Also Ten dollars is more than just a psychological barrier. Some institutional investors cannot invest in shares below $10 and some bond contracts require companies above that level.

This point is important because if these stocks cannot be bought by mutual funds then their stock is much less in demand.




http://www.reuters.com/article/ousiv/id ... 6T20081119


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