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Bridge over ocean
1 January 2011 Financial Analysts Journal Volume 67, Issue 1

Asymmetric Changes in Stock Prices and Investor Recognition around Revisions to the S&P 500 Index

  1. Haigang Zhou

This study finds that first-time additions to the S&P 500 Index or its family
experience permanent price increases; however, companies upgraded from
lesser-known S&P indices, reentering the S&P 500, or dropped from the
index experience temporary price changes. These price patterns can be explained
by changes in investor recognition.

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