How Many Stocks Are Listed in the S&P 500? - Hint: It's Not 500 - How Money Works #Shorts

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How many constituent stocks do you think are listed on the S&P 500?

500 right?

Wrong

It’s actually 505… why? Well there are still only 500 companies represented but some of these companies have more than one class of company shares. Currently, Google, Fox, Discovery, News Corp, and Under Armour list two class of shares.

But how did this happen?

In 2015, the S&P 500 allowed for multiple share classes to be included into the index.

Companies saw that having voting and non-voting shares would be a way to prevent giving up control. When Snapchat tried to create a class with no voting power, the S&P ultimately stopped multi-class share inclusion in the S&P 500, but allowed the existing ones to remain.


This means make sure you know what shares your buying, and whether or not you will have a say in company decision making


#Shorts #S&P500 #StockMarket #HowMoneyWorks



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