Google Not in S & P 500
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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