How moving up an index affects a stock

by time news

2023-07-18 11:34:07

When a company goes public, this is usually associated with high hopes. One of them is likely to be a later inclusion in one of the larger and more important stock market indices in the world. That creates course fantasy. As a rule, a share then receives much more attention than without this event – from investors, from analysts or from customers and potential talents.

Many funds are only allowed to invest in such selected stocks or simply replicate an index with the stocks it contains. Private investors can often rely on the existing expertise of stock experts for their investments. Therefore, they often resort to these stocks – the more important the index, the more closely observed – or to index investments such as ETFs.

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