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S&P 500 will exclude Snap because its stock gives new shareholders no power

S&P 500 will exclude Snap because its stock gives new shareholders no power

Joining the Standard & Poor’s 500 — an index of the nation’s biggest and most popular stocks — has long been an important mark of validation for businesses. It signals that a company has ascended to corporate America's elite and boosts its share price by about 5%.

But the recognition won’t be bestowed on Los Angeles’ largest and best-known tech company anytime soon. Snap Inc. and other companies that limit shareholders’ voting rights aren’t eligible to become new members of the S&P 500 under a rule that went into effect Tuesday.

The Snapchat app maker had irked major shareholder groups, including the retirement fund for California teachers, by becoming the...

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