Sears dropped from S&P 500 - latimes.com
Sears Holdings Corp., one of the earliest members of the S&P 500,
is being kicked out of the index next week and replaced by a Dutch
chemicals company.
The retailer, which trades on Nasdaq, will exit
the index when the market closes on Sept. 4. LyondellBasell, based in
the Netherlands, will take its place.
Sears has been wracked by
stressed sales, store closures, brand spinoffs and consumer skepticism.
But its retail struggles didn’t cause its expulsion from the S&P
club.
Instead, the number of shares
Sears made available to the public, known as the “public float,” “has
been well below the 50% threshold for inclusion for an extended period
of time and is no longer considered representative of the index,”
according to a statement from S&P Dow Jones Indices.
As a result, Sears may drop off the trading radar for many indexed funds that use the S&P 500 as a bellwether.
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