TSX:LSG.DB - Post by User
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HARJAYon Sep 13, 2014 11:11pm
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RE:RE:Lake Shore Gold added to S&P/TSX indices
RE:RE:Lake Shore Gold added to S&P/TSX indicesDon't know if this answeres your question but it might give some in sight in sight. Hope it helps.
Index Fund Buying
Many mutual funds and exchange-traded funds (ETFs) are based on various stock indices. When an index is rebalanced, the funds must sell the deleted stocks and buy the added ones in their portfolios. Fund buying often causes short-term volume and price spikes in the newly-added stocks. After the flurry of buying activity generated by index rebalancing, the stocks go back to trading based on their fundamentals. However, investor inflows into mutual funds and ETFs can push up the prices of all stocks in an index, in the same way that investor outflows can push them down.