The changes could have a ripple effect through mutual funds and other portfolios that hold the impacted securities, as well as “passive” investment funds that are based on the indexes.
Technical problems with the NASDAQ stock market on Friday prevented some orders from taking place as requested. Russell, which rebalances its 21 US stock indexes each year effective July 1, had planned to use the official NASDAQ closing prices for NASDAQ-listed securities in the Russell Indexes.
NASDAQ MarketWatch, which conducts real-time surveillance of issuer and trading activity in NASDAQ, and NASDAQ senior management reviewed closing prices today and over the weekend in order to assess whether the reported last sale prices were substantially related to the market upon Friday’s market close.
Adjustments were made to the last sale price of nine stocks over the weekend and another 26 today, according to NASDAQ.
Russell’s reconstitution process results in a newly adjusted stock composition for all Russell U.S. stock indexes, effective with the start of the third quarter.
All stocks opened for trading and traded normally today.
A list of the stocks impacted is at http://www.nasdaqnews.com/news/pr2001/ne_section01_200.html .
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