How can I find out if a company I like is included in an index?

By Ayton MacEachern AAA
A:

There are a few ways to find out what indexes a company is involved in, and investors should take note of them when they are building their portfolios.

Knowing what indexes a company's stock is a part of can be very important part of predicting future movement. News that affects markets and sectors as a whole, will often move all the stocks within the index, regardless of whether or not the news was speaking directly about the company.

Determining the Indexes
Many websites provide information on what indexes a company may be a component of, however one of the easiest to use may be at Yahoo! Finance. By going to the Yahoo! Finance quote page, and clicking the link to "Components", you will see the indexes that include the particular stock you are searching.

Get to know the most important market indexes and the pros and cons of investing in them, in our related article Index Investing.

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