lswcap
Tesla is added to the S&P500 Index. It is a milestone in expanding the investor base and gaining a position like heavyweight companies like Apple, Berkshire Hathaway and Microsoft.
According to S&P Dow Jones Indices on November 16 (local time), Tesla’s share price exceeded the closing price by 13.7% in after-hours trading. Accordingly, Tesla will officially participate in the S&P index before opening on December 21st.
Adding Tesla to the S&P500 index will make it one of the most valuable companies. Due to the large size of the company, S&P Dow Jones Indices is considering whether to add Tesla shares to the market cap at once or divide it into two. S&P Dow Jones Indices said Tesla is the largest addition in the past decade, making it one of the largest fund traders in S&P500 history. However, Tesla is liquid, and the addition of Tesla shares in the December quarterly stock exchange will coincide with the closing of stock options and stock futures trading, stock index options and stock index futures, contributing to facilitating financial transactions.
Editing the S&P500 has advantages such as buying stocks by investors holding index-linked funds. Tesla shares are already rising. This also means investors have to sell other stocks to buy Tesla stock. Conversely, existing investors may use demand to sell. Related information can be found here .
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