THE LEX COLUMN: A Musk-have purchase
Tesla’s admission to the S&P 500 benchmark on December 21 is going to shake things up
Shaking up the status quo is Tesla’s stock-in-trade. Even so, the US electric car company’s admission to the S&P 500 benchmark on December 21 is going to cause a ruckus that low-profile index compilers might prefer to avoid.
Index membership means tracker funds have to buy the stock. The S&P 500 is weighted by market capitalisation and shares available for trading. Those parameters mean Tesla would be about the 14th largest company in the index by weighting (based on a market cap of $387bn)...