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Coinbase and Other Stocks Could Be Added to the S&P 500 Today. What to Expect After the Rebalance. - Barron's

1. COIN, Robinhood, and AppLovin may be added to the S&P 500 soon. 2. Analysts predict potential gains of 7% before index inclusion for COIN. 3. Post-inclusion sell-offs average 1.3% in the first week for COIN. 4. COIN has a market cap of $54.4 billion, ranking it highly. 5. The official announcement for index reshuffling will follow March 21 close.

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FAQ

Why Bullish?

The potential inclusion in the S&P 500 can boost investor interest. Similar stocks historically gain 7% before inclusion, indicating positive market sentiment.

How important is it?

Inclusion in the S&P 500 typically enhances visibility and credibility, likely to attract institutional investments. This can significantly influence COIN’s trading volume and price behavior.

Why Short Term?

The immediate effect will be seen ahead of index inclusion. Historical trends show a brief price hike followed by potential sell-offs.

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