Why Tesla’s inclusion in the S&P 500 index matters ...Middle East

Economy by : (Quartz) -
Tesla, the electric-car maker with a market value of $630 billion, joined the Standard & Poor’s 500 index today.So what does that mean for Tesla shares?The S&P 500 is widely seen as the benchmark for large US stocks and one of the most important stock-market gauges in the world. Many money managers are judged by how well they perform against the S&P, giving them an incentive to own Tesla to avoid deviating from the index. Likewise, a host of index funds are also linked to it and will automatically add Tesla shares so they can track it as closely as possible. S&P estimates that more than $11 trillion worth of assets are benchmarked to the S&P 500.Read the rest of this story on qz.com. Become

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