If your shares are added to the All Ordinaries Index is that a good or bad thing for the share price? I understand that when they release additional shares then it is likley that the price will generally drop back close to what the additional shares were released at due to dilution etc - at least that is my basic understanding - but i haven't come across my shares being added to the All Ords Index before. Others that i have been keeping an eye on have been removed. I guess it's bad for them then. any comments appreciated.
A stock being added to an index generally is a good thing for share price, as weighted index funds are obliged to buy up and re-weight. As for equity dilution, that is a different story.
