why do companies get added to the s&p 500?

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why do companies get added to the s&p 500?

Is it because of size? As CBG will be added and FSH will be dropped, but FSH is almost twice as big as CBG?

2006-11-06 13:06:08 · 2 answers · asked by Jason W 2 in Business & Finance ➔ Insurance

2 answers

There are no set rules. The S&P Index Committee has the final say based on their own criteria. If you want the full explanation, it is here:

http://www.ifa.com/Media/Images/PDF%20files/SP500_Rules_GeneralCriteria.pdf

It is an easy read.

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2006-11-06 13:20:13 · answer #1 · answered by Zak 5 · 0⤊ 0⤋

Its more about their revenue than the number of emplyees. Standard and Poors selects the companies for that index. Go to their website for more info.

2006-11-07 00:25:20 · answer #2 · answered by Ryan T 2 · 0⤊ 0⤋