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This profile was automatically generated using 1 reference found on the Internet. This information has not been verified. Learn more...
This profile was automatically generated using 1 reference found on the Internet. This information has not been verified. Learn more...
Web References
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1. www.terranovatrading.newsalert.com
www.terranovatrading.newsalert - [Cached]Published on: 9/11/2001 Last Visited: 6/21/2002
The cutoff to make the Russell 2000 Index is hovering around $130 million in market cap, says Andrew Bruchner, a vice president and trader at Guzman.
The key factor to remember is that fundamentals such as profitability or market share or product viability don't play a part in this analysis. It's all about market capitalization.
So, a cheap stock -- selling for $1 or less -- with a large number of shares outstanding could easily make the index even if the company might be on the brink of insolvency.
Russell's theory is to allow the market to determine which stocks go into its indexes.
