Did you bet TESLA will be added to S&P 500? I have news for you: it wont!
Source: FX Empire
What is important is the reason behind not being added. There is speculation around accounting gimmicks
The decision will have an immediate impact on buying power because SP-500 membership would have forced tracking funds to buy more than 120 million shares of Tesla stock. Index components must have a market cap of more than $8.2 billion and report four profitable quarters in a row, according to standard accounting principles. The company has come under persistent criticism from skeptics who insist that profits rely on accounting tricks and these alleged practices may have been factored into the exclusion.
It aint pretty, right?
What does it mean for speculators? Well, these folks look only their screen and check price candles. So probably not much (until they panic and poo in their pants).
What do you think about it?
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