S&P Dow Jones Keeps S&P 500 Eligibility Rules Unchanged After MegaCap Review
S&P Dow Jones Indices said Thursday it will not change eligibility requirements for the S&P 500, S&P MidCap 400 or S&P SmallCap 600 following a review of whether mega-cap companies should receive exemptions from existing index rules.The index provider said it rejected proposals to waive or relax financial viability, IPO seasoning and minimum float requirements for large companies, concluding that current rules preserve consistency and maintain the indices' role as representative and investable benchmarks.The decision means newly listed mega-cap companies will remain subject to existing requirements before becoming eligible for inclusion in the S&P 500.As a result, SpaceX, which is preparing a highly anticipated stock market debut, would not qualify for the benchmark index until it has traded publicly for at least one year.