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General Market Question
When a stock gets listed on the Russel 2000 does this increase the volume and help the stock?
Asked by Onion in
General Market
5 months ago
Stocks referenced: NRIM
Answers
147 points
DCR answered 5 months ago …
Unlike the DOW and S&P, the Russell Indexes are adjusted annually based solely on market capitalization. The 1,000 companies with the greatest capitalization (i.e. price/share times shares outstanding) comprise the Russell 1000, etc.
When a stock hits the Russell 2000 it's confirmation that it has already risen in value, so the bottom line is: in theory it should have no effect on volume and price.
426 points
MONEYTREE answered 5 months ago …
no it should not, but it could go up very little just on the fishy daytraders...so please dont trade anything or invest in any stock thats is new in that index, just based on getting in the index for the first time,,
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