Tesla is ready to bid? S & P Dow Jones said so

category:Finance
 Tesla is ready to bid? S & P Dow Jones said so


First finance and Economics: if the S & P 500 index is accepted, what will Teslas weight be?

Silver Blatter: of course, market value is an important consideration for the weight. Apple and Microsoft are the most weighted stocks in the S & P 500 index. In addition, the circulating market value of individual stocks is also very important. Teslas market value closed at close to $300 billion on Wednesday. Weighted by the current market value, excluding Musks individual holdings, the public tradable market value was about $233 billion. If it is included in the index, the weight can reach 0.85%, and its market value ranks 17th among the constituent stocks, and it is also the top 25 enterprises with global market value.

First finance and Economics: before technology stocks become the mainstream, there will always be a controversial time. You also mentioned that S & P components must be able to represent the market. Im curious. What do you think of a controversial individual stock like Tesla?

Silverblatter: the S & P Dow Jones index is no stranger to technology stocks, although it encountered a lot of resistance and difficulties in its early years. In the 1998-1999 year when technology stocks rose, investors complained that the S & P 500 index failed to quickly incorporate more technology stocks, but when the Internet bubble burst, investors complained that there were too many technology stocks in the index.

In any case, the index must be able to reflect the market and follow the general trend. The technology sector currently has the largest weight in the S & P 500 index, which is about 26%. As a reference, the weight of the financial sector is about 10%.

Finance one: it is less than two months before the next quarterly review of the S & P Dow Jones index. What will the members of the index committee do during this period?

Silver Blatter: in order to accurately reflect the changing stock market, the adjustment of component stocks can occur at any time, not necessarily until the time of quarterly review. Members of the Committee exchange views almost every day, and the final decision is announced five trading days in advance. Until then, even the selected companies did not know whether they would be included.

Finance one: does this mean that Tesla was included in the S & P 500 earlier than the market expected?

Silverblatter: thats not necessarily true. There is no timetable for Tesla to be included and when. Just like other stocks that meet the criteria for index compilation, the committee members are still deliberating. In the end, the market has the most say. First finance and Economics: many investors question that Teslas valuation is too high and its stock price is unrealistic. I wonder if you have talked with investors in the S & P 500 index about Tesla? Silverblatter: Tesla is an emotion driven trading stock, and the S & P Dow Jones index has not discussed such an emotional stock before. However, we do not allow candidates to lobby investors when we examine individual stocks. Whether investors welcome it or not, the inclusion decision depends entirely on whether individual stocks meet the methods and standards of index compilation. Source of this article: Yang Bin, editor in charge of the first finance and Economics_ NF4368

First finance and Economics: many investors question that Teslas valuation is too high and its stock price is unrealistic. I wonder if you have talked with investors in the S & P 500 index about Tesla?

Silverblatter: Tesla is an emotion driven trading stock, and the S & P Dow Jones index has not discussed such an emotional stock before. However, we do not allow candidates to lobby investors when we examine individual stocks. Whether investors welcome it or not, the inclusion decision depends entirely on whether individual stocks meet the methods and standards of index compilation.