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This is very interesting. However, it doesn't appear this rule is applied consistently as Facebook is in the S&P500 and is probably the most infamous example of
by SoylentOrange 6y ago
This is very interesting. However, it doesn't appear this rule is applied consistently as Facebook is in the S&P500 and is probably the most infamous example of a multi-class share structure.
- jcranmer 6y agoFacebook is grandfathered in, having been added in 2013. Although the linked article says the following: > Companies with multiple share classes already in one of the indices will have until September 2022 to change their structures or face removal.
- andrewla 6y agoThat's not S&P -- that's FTSE Russell [1]: > For existing constituents, the rule will apply with effect from September 2022, thus affording a five year grandfathering period to allow constituent companies to change their capital structure if they so wish. From my reading, S&P has not yet announced a similar policy. [1] https://research.ftserussell.com/products/downloads/FTSE_Russell_Voting_Rights_Consultation_Next_Steps.pdf https://research.ftserussell.com/products/downloads/FTSE_Rus...
- drocer88 6y agoFacebook joined in 2013. Social Media Valley companies already in the S&P 500 were allowed to remain.
- skohan 6y agoI guess it would apply to Alphabet as well