TSX:LSG.DB - Post by User
Comment by
HARJAYon Sep 15, 2014 3:33pm
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Post# 22937531
RE:GDXJ Rebalance - LSG and TGZ
RE:GDXJ Rebalance - LSG and TGZI think the point is that when a stock gets added to an index the mutual funds that follow that index are required to also add that stock to their potfolio's and therefore there is initially potentially greater demand for that equity. Greater demand usually translates into the share price going up.
Am i being too simplistic in my perception of the scenario , or do i have a good grasp on the effects of a stock being added to an index.