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S&P indexes raise minimum market cap requirements

Published 06/03/2021, 07:00 PM
Updated 06/03/2021, 07:06 PM
© Reuters. FILE PHOTO: A trader looks at a screen that charts the S&P 500 on the floor of the New York Stock Exchange (NYSE) in New York, U.S., April 27, 2017. REUTERS/Brendan McDermid
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(Reuters) - S&P Dow Jones Indices announced on Thursday it was increasing the minimum market capitalization requirements for companies joining the S&P 500 and other stock market indexes.

Companies must now have a stock market value of at least $13.1 billion to join the S&P 500, Wall Street's most followed benchmark. That is up from a previous minimum of $11.8 billion.

Falling below market capitalization minimums does not mean companies will be removed from S&P indexes. Nearly 40 S&P 500 companies currently have stock market values under $11 billion.

Corporations face several additional eligibility requirements for consideration to be included in the S&P 500, as well as the S&P MidCap 400 and SmallCap 600.

© Reuters. FILE PHOTO: A trader looks at a screen that charts the S&P 500 on the floor of the New York Stock Exchange (NYSE) in New York, U.S., April 27, 2017. REUTERS/Brendan McDermid

Tesla (NASDAQ:TSLA) had a market capitalization of over $600 billion when it entered the S&P 500 last December.

The minimum market capitalization requirement for the S&P MidCap 400 index will rise to $3.6 billion from $3.3 billion, and the minimum for the SmallCap 600 will climb to $850 million from $750 million, S&P Dow Jones Indices said in a press release.

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