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Key Takeaways
- Trump Media & Technology Group has been added to the Russell 3000 and Russell 1000 indexes as part of their annual adjustment.
- The indexes track the largest public companies on U.S. stock exchanges by market capitalization.
- Being included on a major index can lead to companies receiving greater attention from investors, along with inclusion in exchange traded funds (ETFs) and other investments that track the performance of an index.
Trump Media & Technology Group (DJT) shares rose in intraday trading Monday after it was announced that the owner of the Truth Social platform has been added to the Russell 3000 and Russell 1000 indexes as part of their annual adjustments.
The media company of the former president will be a part of the indexes until the next annual rebalancing that takes place in June. This year’s adjustments were finalized after markets closed Friday and are effective Monday morning, with dozens of other companies also joining the indexes along with Trump Media.
What the Addition Means for Trump Media
The Russell 3000 tracks the largest companies that trade on U.S. stock exchanges by market capitalization, and is the basis for the smaller Russell 2000 and Russell 1000 indexes, which track the bottom two-thirds and top third of the larger index, respectively.
Companies can gain a number of benefits from being included on a major index like the Russell indexes or the S&P 500, among others.
Inclusion on a major index can lead to more investors becoming aware of a stock, and also lead to the stock being added to exchange traded funds (ETFs) or other investment vehicles that track the performance of a specific stock index.
Trump Media shares were up 2.1% to $33.42 as of noon ET Monday.