Published - September 5th, 2023 @ 2:40 PM (GMT+2)
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‍Blackstone Joins S&P 500, Spurring Stock Growth:

Blackstone Inc., (NYSE:BX) trading under the BX ticker, saw its shares surge 4.1% in post-market trading this past Friday. This uptick came in response to the announcement by S&P Dow Jones Indices that Blackstone will be included in the S&P 500 Index. Effective before trading commences on September 18, the private equity giant will replace Lincoln National Corp. as part of the index's quarterly rebalancing.

Shifting S&P Guidelines Favor Blackstone:

Blackstone's dual-class share structure, which includes unequal voting rights, has helped its inclusion in the prestigious index. This follows an April S&P Dow Jones Indices decision to abandon a 2017 policy that precluded firms with multi-class shares from S&P 500 membership. As a result, market watchers had anticipated Blackstone's addition to the index.

Airbnb Also to Make Debut in S&P 500:

Interestingly, Airbnb, Inc., (NASDAQ:ABNB) identified by the ticker ABNB, is another enterprise set to join the S&P 500 Index on the same date as Blackstone. The online lodging marketplace saw its stock climb 5% in post-market trading after the announcement, and it will replace Newell Brands Inc. in the index.

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To qualify for a spot in the S&P 500, a U.S. firm must meet specific criteria: high liquidity, a minimum market capitalization of $14.5 billion, and adherence to specific profitability standards, liquidity, and share float.

The S&P 500 undergoes quarterly rebalancing to ensure it reflects current market conditions. Although most changes to the index are made during these quarterly reviews, exceptions exist, such as when mergers and acquisitions occur.

Rationale Behind S&P 500 Adjustments:

Modifications to the S&P 500 are carried out by S&P Dow Jones Indices to accommodate fluctuations in market capitalization and sometimes to address changes in market trends.

Impact on Blackstone's Market Performance:

As the leading alternative asset management firm in the U.S., Blackstone stands to benefit considerably from its S&P 500 membership. This inclusion is likely to lift the company's share price further and enhance investor trust.

Encouraging Outlook for Blackstone:

Blackstone's diversified portfolio of products and promising organic growth makes it a strong contender in alternative investments. Its superior fundraising capabilities are expected to fuel further profitability.
Over the last half-year, Blackstone's shares have appreciated by 14.2%, starkly contrasting the 4.6% downturn experienced by the industry.

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