The S&P500 index doesn’t speculate about whether a company’s stock is over- or underpriced. It’s a market-cap-weighted index, meaning the weight of companies like Tesla is based on their market value, not an estimation of their future performance. Speculating about whether a stock is overvalued is something actively managed funds do, but the S&P500 is designed to passively reflect the largest U.S. companies based on size.
Structured as Corporation Based in the U.S. with Common Stock in Capitalization
Listed on an Eligible U.S. Exchange (e.g. NYSE, NASDAQ)
Positive Reported Earnings in the Most Recent Quarter and on a Trailing Twelve Months (TTM) basis – i.e. the Sum of the Most Recent Historical Four Quarters
This last one is interesting. Large companies with very risky cash flows are excluded from the S&P 500
These are the requirements you need to fulfill before a board of investors decide. I don’t think they need to have anything else than “We don’t like you anymore” to get rid off it.
But yeah, October the 23rd will be an exciting day.
On a different note, musk said it himself that only a fascist takeover of trump can spare him from jail, so even he knows he and his company is cooked, if laws finally catch up to him.
The S&P500 index doesn’t speculate about whether a company’s stock is over- or underpriced. It’s a market-cap-weighted index, meaning the weight of companies like Tesla is based on their market value, not an estimation of their future performance. Speculating about whether a stock is overvalued is something actively managed funds do, but the S&P500 is designed to passively reflect the largest U.S. companies based on size.
This last one is interesting. Large companies with very risky cash flows are excluded from the S&P 500
These are the requirements you need to fulfill before a board of investors decide. I don’t think they need to have anything else than “We don’t like you anymore” to get rid off it.
But yeah, October the 23rd will be an exciting day.
On a different note, musk said it himself that only a fascist takeover of trump can spare him from jail, so even he knows he and his company is cooked, if laws finally catch up to him.