How did Facebook end up in the S&P 500?

We dive into the process for adding companies and booting them from the iconic index.

Adam Zoll 10 January, 2014 | 7:00PM
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Question: I heard that Facebook FB was just added to the S&P 500 even though the company went public just last year. What are the rules regarding when a company joins or leaves the index?

Answer: Given the S&P 500's role as one of the most widely used measures of U.S. stock market performance, one might assume that the index's composition doesn't change much from year to year, but that's not necessarily the case. In fact, in 2013 alone the S&P 500, which tracks the stocks of many of the largest U.S. companies and weights them by market value, swapped out 18 constituent companies in exchange for others.

Companies added in 2013 include clothing maker Michael Kors Holdings KORS, Delta Air Lines DAL, News Corp NWSA, oil-services company Transocean RIG and Vertex Pharmaceuticals VRTX. Meanwhile, those leaving the index included Dell, Sprint S, J.C. Penney JCP, Dean Foods DF, and NYSE Euronext.

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Adam Zoll

Adam Zoll  Adam Zoll is an assistant site editor with

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