|First the company has to be added to the index and that usually does not happen initially.
Posted: 2/26/2012 5:38:23 PM
But once it does happen you just find its overall weighting in the index and calculate that percentage and see what it does to the index.
What you are saying in numbers is right, the value of the company in MINUS the value of the company out will weight the index accordingly.
The S&P when they add one, they take out another.