PT  - JOURNAL ARTICLE
AU  - Messod D. Beneish
AU  - Robert E. Whaley
TI  - S&P 500 Index Replacements
AID  - 10.3905/jpm.2002.319863
DP  - 2002 Oct 31
TA  - The Journal of Portfolio Management
PG  - 51--60
VI  - 29
IP  - 1
4099  - https://pm-research.com/content/29/1/51.short
4100  - https://pm-research.com/content/29/1/51.full
AB  - Standard & Poor's has become increasingly aggressive in deleting stocks from the S&P 500 index. Where once it made replacements in the index only when a particular stock had to be removed due to merger or acquisition, corporate restructuring, and bankruptcy filing, S&P now voluntarily removes a company for a variety of reasons, which may include low market capitalization, low share price, dwindling market share, or simply the need to find a spot for an up-and-comer. There are a variety of impacts on share price and trading volume for stocks added to and deleted from the S&P 500 during the period January 1996 through December 2001. For additions, abnormal returns and trading volumes are higher than ever. For deletions, share prices are dealt a crippling blow.