Dec. 23 at 2:50 PM
$TONX I'm guessing it's reason #3
A company can be removed from the index for several reasons, which generally fall into two categories:
Failing to Meet Eligibility Criteria: The most common reason for involuntary removal is the company's failure to meet specific quantitative metrics during quarterly reviews. These criteria likely include:
Market Capitalization Decline: The company's market value may have fallen below the index's minimum required threshold.
Liquidity Issues: Insufficient trading volume or "free float" (shares available to the public) can lead to removal.
GICS Reclassification: If the company's primary business changes such that its Global Industry Classification Standard (GICS) sub-industry is no longer considered part of the software and services sector, it will be removed.
Financial Performance: Consistent negative earnings, high debt levels, or other financial troubles may prompt the S&P Index Committee to remove the stock.
