S&P Phenomenon
What Does S&P Phenomenon Mean?
The tendency for a stock that is newly added to the S&P index to temporarily increase in price.
Investopedia explains S&P Phenomenon
When the S&P 500 makes adjustments to the list of companies within the index, fund companies and portfolios that follow the index also make adjustments to their held stocks. Since these entities are all trading large blocks of the same stock, its share price temporarily increases.
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