EchoStar To Replace DISH Network In S&P SmallCap 600 Effective Prior To The Open Of Trading On January 2
Portfolio Pulse from Benzinga Newsdesk
EchoStar will replace DISH Network in the S&P SmallCap 600 before trading opens on January 2, coinciding with EchoStar's acquisition of DISH Network, subject to final conditions being met.
December 27, 2023 | 10:18 pm
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NEGATIVE IMPACT
DISH Network's removal from the S&P SmallCap 600 may result in reduced demand for its shares from index funds, potentially leading to a short-term decline in its stock price.
Being removed from an index like the S&P SmallCap 600 can lead to selling pressure on a stock as index funds and ETFs that replicate the index composition sell their holdings. This could negatively affect DISH Network's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
EchoStar's inclusion in the S&P SmallCap 600 could lead to increased demand for shares from funds tracking the index, potentially boosting its stock price in the short term.
Inclusion in a major index like the S&P SmallCap 600 often leads to increased demand for a stock as index funds and ETFs that track the index are required to purchase shares. This can result in a positive short-term price impact for EchoStar.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90