RE:RE:RE:RE:RE:RE:RE:RE:RE:Net effect on BIR share price from recent developments t Never knowing what their objectives are, it would have made sense to sell Friday. This assumes the outlook is lower price for this equity. If they must liquidate, by when are they required to do so? If they assume the price will rise due to positives in the company / industry, perhaps they would be content to wait until required. We will see.
Chris007 wrote: catman24 wrote: OK, how about this, I bet a lot of the (deleted) SELLING, from the index has already happened, this has been known for a while.
Why would index funds that track the index pre-emptively sell? that really makes no sense. The point of index funds is to track the index, not generate alpha.
Indeed, there has been discussion for the past while speculating what stocks would be deleted/added, and active manager may indeed speculate according to such rumours. That being said, it really has no bearing on index mutual funds and etfs that are passive and make up the bulk of equity markets nowadays.