S&P Dow Jones Indices Opts Out Robinhood Markets from S&P 500 Index
S&P Dow Jones Indices decided not to make any quarterly changes to the S&P 500 index, disappointing Robinhood Markets Inc., which was widely expected to join. Robinhood’s shares fell over 5% in after-hours trading, despite a 3.3% gain during the regular session.
A place in the S&P 500 is highly coveted, offering exposure to a broader range of investors and passive funds. To join, companies need a minimum market capitalization of $20.5 billion and must meet profitability standards.
The index committee chooses members, recalibrating the index every quarter. Coinbase Global Inc. joined the S&P 500 last month, replacing Discover Financial Services.
