Tuesday, February 24, 2009

S&P Deflation

According to Bespoke investments, 134 of the 500 companies that make up the S&P 500 are technically ineligible for inclusion in the S&P 500 index because their market valuations are too low.

To be included in the Index a company must be worth at least $3 billion. Fortunately, the limit only applies when a company is first included; it doesn't mean a company gets kicked out when it's value drops after it's in the index.

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