Is It Good When A SP500 Company Aquire’s and SP500 Company?


Let’s use the recent Activision Microsoft buyout. Since they are both in the SP500, wouldn’t the purchase allow another company to enter the SP500? If that’s true, then would it just be a wash since money is being spent to get the company? Or would a purchase like this help grow a SP500 ETF, even if by a marginal amount..?


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