Topic: Does Rebalancing affect a stock’s price?
Rebalancing is a term used to describe when stocks are moved from one Index to another such as from the ASX300 to the ASX200, or vice versa as the company grows larger or smaller. As many institutions have rules about which index, they can own stock, is there an opportunity to buy and sell stock to take advantage of this movement between various indices. This presentation will look at some practical examples of what happens to the price of stocks as they move from one index to another.
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