Standard & Poor’s 500 Index has not included Google.


Jonathan Berr has reported in The Street that Google could not enter the first 500 companies listed by Standard & Poor.

Standard and Poor, S&P, is a eight-member committee that decides on the index’s membership.

According to The Street’s report, David Blitzer, the committee’s head said that S&P doesn’t discuss the reasons why companies are chosen for the index and others aren’t. It usually makes its decisions unanimously, though it isn’t required to.

The factors considered by S&P are the company’s profitability and
how often its shares turn over in a year. Price appreciation alone isn’t enough.

According to Jonathan, at least half the shares of the company also have to be in a public float. About 37% of Google’s shares are held by insiders, compared with 14% at Microsoft and 11% at Yahoo!.

 

 

 

 

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