GOOG Added to S&P 500

Discussion in 'Community Discussion' started by WildCowboy, Mar 23, 2006.

  1. WildCowboy Administrator/Editor

    WildCowboy

    Staff Member

    Joined:
    Jan 20, 2005
    #1
    Nice to see Google added to the S&P 500. Shares are up almost 10% in after hours trading. The addition has been long expected, but it's still nice to see it finally happen. My portfolio rejoices.

    Forbes Article
     
  2. cslewis macrumors 6502a

    cslewis

    Joined:
    Jul 23, 2004
    Location:
    40º27.8''N, 75º42.8''W
    #2
    Wow, that's pretty cool.

    Excuse my stupidity, but where were they before? On the nasdaq? Or were they private?
     
  3. WildCowboy thread starter Administrator/Editor

    WildCowboy

    Staff Member

    Joined:
    Jan 20, 2005
    #3
    NASDAQ is a stock exchange, just like the New York Stock Exchange. The S&P 500 is an index, like the Dow Jones Industrial Average. GOOG remains on the NASDAQ exchange, but will soon be added to the S&P index of their "top 500" stocks.

    Being added to the index helps investors. There are a number of mutual funds which attempt to "track" major indices like the S&P 500, so those funds will have to acquire GOOG shares in order to continue to track the index. There are other funds that are governed by rules trying to limit investments in risky stocks...limiting investments to S&P 500 stocks is one way to try to do this. So GOOG will be an option for many of these funds now.
     

Share This Page