Answer 2 Questions
Please answer this two questions:
1. Demand and supply curves for any market are, of course, a conceptualization. To trace out a demand curve (i.e., know if it slopes down), we necessarily need to observe a shift in the supply curve. In what sense is there a shift in supply happening when a stock is added to the S&P 500 list?
2.Can you find one or several specific examples of an addition to the S&P 500 in the past year or two? What happened to stock value at the announcement time?