Tesla's Price Movement Brings Index Exclusions Into View

The video discusses Tesla's recent market impact and its absence from the S&P 500 due to financial viability criteria. It explains the S&P's requirement for positive earnings over the past four quarters and highlights the challenges faced by recent IPOs, especially tech companies, in meeting these profitability standards.

Which index saw Tesla's position gain the most recently?

• Nasdaq Composite

• Russell 2000

• Vanguard Consumer Discretionary Fund VCR

• Dow Jones Industrial Average

What is the main reason Tesla has not been included in the S&P 500 yet?

• Its stock price is too volatile.

• It does not meet the financial viability criteria.

• It is not a tech company.

• It has not been publicly traded for long enough.

What is one of the criteria for a company to be included in the S&P 500?

• Being a tech company.

• Having positive earnings over the past four quarters.

• Being headquartered in the United States.

• Having a market cap over $1 trillion.

What is a key factor the S&P index committee considers for inclusion?

• Company's employee count

• Company's innovation

• Company's profitability

• Company's market share

Why might recent tech IPOs struggle to be included in the S&P 500?

• They are not headquartered in the U.S.

• They are not popular with investors.

• They are too new to the market.

• They often lack profitable forecasts.