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Historically, stocks added to the S&P 500 average gains of about 8.5% during the 30-day window following the announcement up to the actual inclusion, according to Bear Stearns.
Expected to be added on the 31st March. If shares alreday are up be 8.1% after hours then what do people think will happen to share prices up until the 31st March and the immediate aftermath of joning the S&P 500?
The decision instantly puts Google -- less than two years after going public --on the shopping list of hundreds of mutual fund managers who run portfolios that track the components of the S&P 500
Totally. This is somewhat cool to have a leading edge dot com stock in the S&P 500...and somewhat scary. Wonder if Google has the highest P/E of all companies on the S&P 500...
You can count on it that the 8-10% is what it is for this news. On the stockmarket, it is the news that brings it up or down. So there will be no further effect on the 31 March. (well let's hope I'm wrong ;-)
I think part of the increase will be due to the fact that index funds will have to aquire GOOG for their portfolios.