S&P Dow Jones Indices to Exclude Companies with Multiple Classes
Publication Date: August 4, 2017

S&P Dow Jones Indices announced that it would bar companies with multiple classes, including those with share classes that offer limited or no voting rights, from inclusion in certain indices. Effective immediately, the S&P Composite 1500, which includes the S&P 500, S&P MidCap 400, and S&P SmallCap 600, will no longer add companies with multiple share class structures. Existing companies in the indices with multiple classes are grandfathered in and will not be affected by the change. FTSE Russell previously announced that starting in September it would exclude new companies from joining certain indices, including the Russell U.S. indices, unless more than 5% of the company's voting rights (aggregated across all classes of securities) are held by unrestricted (free-float) shareholders.

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