this post was submitted on 13 Jul 2023
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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
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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!

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[–] 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