When a company is announced as a new member of the S&P 500, the news often makes frontpage headlines. For executives, it’s a moment of validation. For investors, it can spark excitement.

But what many don’t realize is that joining the S&P 500 isn’t automatic, and it isn’t just about hitting a certain stock price. It’s the outcome of meeting tough criteria and then passing through the judgment of a powerful committee.

The S&P 500 Index is designed to reflect the performance of leading U.S. businesses, so companies must clear several hurdles before they even reach the committee’s desk:

· Market Cap: A minimum of about $15.8 billion (adjusted periodically).

· Liquidity: Stocks must trade actively, with significant volume.

· U.S. Domicile: Only U.S.-based companies qualify.

· Financia

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