S&P 500 Sticks to Rules, Denies SpaceX Early Index Entry
It seems the S&P has decided to stick to its established rules regarding index inclusion, and that means SpaceX won’t be making an early appearance in the benchmark US index. This is pretty significant because the S&P 500 is a major benchmark for many investment funds, and inclusion often leads to a surge in demand for a company’s stock. The primary sticking point, as reaffirmed by the S&P, is profitability. To be part of the S&P 500, a company needs to demonstrate consistent profitability, not just in its most recent quarter but over the past four quarters as well.
This rule is quite standard and has been in place for a long time, so the S&P’s decision to uphold it rather than create special exceptions for a single, high-profile company like SpaceX is being met with a sigh of relief by many.… Continue reading
Matt Underwood