Do Companies Pay For S&P Index Membership?

Patrick Boyle On Finance - A podcast by Patrick Boyle

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Send us a textDo Companies Buy S&P500 Membership? A new working paper attempts to figure out why some companies make it into the blue-chip stock market index.In recent years there has been a huge shift away from active asset management and towards passive, index-tracking funds. The indices that these funds follow have in turn gained enormous power, becoming gatekeepers to the flow of trillions of dollars.Names like S&P Dow Jones, FTSE Russell and MSCI are the biggest index providers a...

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