S&P Phenomenon
The tendency for a stock that is newly added to the S&P index to temporarily increase in price. Investopedia Says:
When the S&P 500 makes adjustments to the list of companies within the index, fund companies and portfolios that follow the index also make adjustments to their held stocks. Since these entities are all trading large blocks of the same stock, its share price temporarily increases. Related Terms:
Index Fund
S&P 500
Standard and Poor's |