this post was submitted on 13 Jul 2023
5 points (85.7% liked)

Investing

791 readers
1 users here now

A community for discussing investing news.

Rules:

  1. No bigotry: Including racism, sexism, homophobia, transphobia, or xenophobia. Code of Conduct.
  2. Be respectful. Everyone should feel welcome here.
  3. No NSFW content.
  4. No Ads / Spamming.
  5. Be thoughtful and helpful: even with ‘stupid’ questions. The world won’t be made better or worse by snarky comments schooling naive newcomers on Lemmy.

founded 1 year ago
MODERATORS
_MoveSwiftly@lemmy.world
5
What happens to a company when it gets kicked out of the S&P 500? (lemmy.fmhy.ml)
submitted 1 year ago by abc@lemmy.fmhy.ml to c/investing@lemmy.world
1 comments fedilink hide all child comments
 

Hello, investment noob here

I'm wondering, what happens to a company when it gets kicked out of the S&P 500? How big of a deal would it be?

  • How hard will the stock price be affected?
  • What happens to the board members and the upper management?
  • What happens to the ETFs that track this index?

Looking forward to read your insights!

you are viewing a single comment's thread
view the rest of the comments
[–] UBWare@lemmy.world 3 points 1 year ago

At least according to CS in this link, in the short term, the price might fall because institutional investors are selling the stock, but eventually the price comes back up to reflect the actual value of the company.

https://www.schwab.com/learn/story/what-happens-when-stocks-index-change