On March 31, Google will become part of the Standard and Poor's 500 index of US-based companies, a move that had been anticipated ever since the company's IPO took place. Investors holding the To better understand why this move is important to Google, it helps to understand a little about index funds. Mutual funds that track the S&P 500 index add and remove companies in large blocks of stock so they can best match the overall performance of the S&P 500. These funds will be purchasing a lot of GOOG when it is added to the index. As an opposite example, when Daimler acquired Chrysler, fund managers dumped Chrysler from their index funds after the S&P removed the company from its index. Since Chrysler became owned by a non-US company, it was no longer eligible for being in the S&P 500. So the impact of joining the S&P 500 is pretty significant to a company. Google investors have realized this, and are likely eager to see how much Google moves up in today's trading. Tag: Add to document.write("Del.icio.us") | Yahoo! My Web Drag this to your Bookmarks. David Utter is a staff writer for Murdok covering technology and business.
Google Gets Indexed By S&P
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