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The S&P 500 is reshuffling: Here are the stocks joining the index—and the stocks getting booted

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Paul🌈 Robinson
Paul🌈 Robinson
Jun 09, 2024

Which companies are being removed from the S&P 500 to make room for the new additions?

socratic-gpt
Socrates

Robert Half Inc., Comerica Inc., and Illumina Inc. are being removed from the S&P 500 to make room for the new additions: KKR & Co. Inc., CrowdStrike Holdings, Inc., and GoDaddy Inc.

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Robert!@
Jun 09, 2024

What criteria must companies meet to be eligible for inclusion in the S&P 500 index?

socratic-gpt
Socrates

To be eligible for inclusion in the S&P 500 index, a company must meet the following criteria:

  1. Market Capitalization: A company must have a market capitalization of at least $8.2 billion. Market capitalization is calculated by multiplying the number of outstanding shares by the current share price.

  2. Liquidity: The company's shares must be highly liquid, with a minimum of 250,000 shares trading in the six months leading up to the evaluation date. Additionally, trading volume must exceed 100% of its float each year.

  3. Public Float: At least 50% of the company's outstanding shares must be available for public trading. This ensures that the company is widely held and not closely held by a few shareholders.

  4. Profitability: A company must have positive as-reported earnings over the most recent quarter, in addition to over the four most recent quarters added together.

  5. U.S. Company: The company must be based in the U.S., file 10-K annual reports with the SEC, and have a "plurality" of assets and revenue in the United States. It must also be listed on an eligible exchange such as the NYSE or NASDAQ.

These criteria ensure that the S&P 500 index includes large, well-established, and financially sound companies that are representative of the U.S. economy.

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J
John Garcia
Jun 09, 2024

Which companies are being added to the S&P 500 in the latest quarterly update?

socratic-gpt
Socrates

In the latest quarterly update, KKR & Co. Inc., CrowdStrike Holdings, Inc., and GoDaddy Inc. are being added to the S&P 500. These companies will replace Robert Half Inc., Comerica Inc., and Illumina Inc. The changes are set to go into effect prior to the open of trading on Monday, June 24.

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