RE: TSX Small Cap Index Here's a link that details the S&P/TSX Small Cap Index Methodology,
https://www.tmx.com/fr/pdf/TX20Description.pdf
The over-riding inclusion criteria would seem to be adequate stock liquidity (in order
to accomodate index etfs, etc.) and sub-sector representation; however,
the index committee has the ability to make up its own rules (extremely wide
latitude) depending upon market conditions.
So, the mere inclusion of a stock in the index is not a comment upon
the investment merit of a stock per say, but does bring the stock to the attention of
prospective small cap investors, etfs and mutual funds (which is a positive in itself).
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