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It's not just a list of stocks. It's also a basis for the purchasing of stocks by ETFs, Mutual Funds, etc. Being in the S&P provides a lot of "depth" to a compa

It's not just a list of stocks. It's also a basis for the purchasing of stocks by ETFs, Mutual Funds, etc. Being in the S&P provides a lot of "depth" to a company's stock. I agree that a company like SNAP doesn't need to be in the S&P since it's pretty much a tech gamble. It's either gonna grow into a juggernaut or it's gonna fizzle. We'll find out soon enough.

CydeWeys 9y ago
I invest almost exclusively in index-tracking funds and ETFs. I don't want my money going into shares of stocks that confer no voting rights at all. That's not really traditional stock ownership at that point, as the corporation is no longer ultimately run by or held accountable to investors. It's something else.
- almost_usual 9y ago
  Good index funds are much more diverse than the S&P 500. The S&P 500 is mostly composed of large-cap companies. The beauty of index funds is that they're so diverse if you had a SNAP in it that plummeted it'd barely impact your portfolio. This is the whole point of index fund diversification.
- awkwarddaturtle 9y ago
  > I invest almost exclusively in index-tracking funds and ETFs. I don't want my money going into shares of stocks that confer no voting rights at all. Okay. I wouldn't either. What does your comment have to do with what I wrote? > That's not really traditional stock ownership at that point, as the corporation is no longer ultimately run by or held accountable to investors. It's something else. I agree. Once again, your comment has nothing to do with what I wrote. Did you reply to the wrong comment by any chance? I'm just pointing out why S&P index is important and why it is more than a list?
almost_usual 9y ago
I'm not sure if "depth" is the right word. Maybe inflation because investors know large S&P 500 funds need to buy SNAP.
hueving 9y ago
>It's not just a list of stocks. It's also a basis for the purchasing of stocks by ETFs, Mutual Funds, etc. Being in the S&P provides a lot of "depth" to a company's stock. It's still just a list and the reason it exists is to indicate some level of vetting. That's the reason that it's used by those funds. Being excluded from the list just means you don't meet certain requirements but it doesn't block anyone from purchasing your stock.

CydeWeys 9y ago

I invest almost exclusively in index-tracking funds and ETFs. I don't want my money going into shares of stocks that confer no voting rights at all. That's not really traditional stock ownership at that point, as the corporation is no longer ultimately run by or held accountable to investors. It's something else.

almost_usual 9y ago
Good index funds are much more diverse than the S&P 500. The S&P 500 is mostly composed of large-cap companies. The beauty of index funds is that they're so diverse if you had a SNAP in it that plummeted it'd barely impact your portfolio. This is the whole point of index fund diversification.
awkwarddaturtle 9y ago
> I invest almost exclusively in index-tracking funds and ETFs. I don't want my money going into shares of stocks that confer no voting rights at all. Okay. I wouldn't either. What does your comment have to do with what I wrote? > That's not really traditional stock ownership at that point, as the corporation is no longer ultimately run by or held accountable to investors. It's something else. I agree. Once again, your comment has nothing to do with what I wrote. Did you reply to the wrong comment by any chance? I'm just pointing out why S&P index is important and why it is more than a list?

almost_usual 9y ago

I'm not sure if "depth" is the right word. Maybe inflation because investors know large S&P 500 funds need to buy SNAP.

hueving 9y ago

>It's not just a list of stocks. It's also a basis for the purchasing of stocks by ETFs, Mutual Funds, etc. Being in the S&P provides a lot of "depth" to a company's stock. It's still just a list and the reason it exists is to indicate some level of vetting. That's the reason that it's used by those funds. Being excluded from the list just means you don't meet certain requirements but it doesn't block anyone from purchasing your stock.