Standards & Poors have released their September Quarter Index rebalance.
I hold a share that has been added to the S&P/ASX 300 and so far today, it has risen by about 4 %.
Does anyone have any literature, or a website, which details the affect of being added or removed from an index?
I understand the prinicpal, in that managed funds have specific rules for themselves, and say will only invest in a company if it is in a certain index, hence there would be additional buying of my company and selling of those that have dropped out, but does this generally happen immediately? or does it take a few weeks for the funds to re balance themselves???