Facebook to join S&P 500 index

A little over a year after its stock market debut, Facebook has joined the S&P 500 index of some of the world’s largest firms, replacing test equipment maker Teradyne.

Companies in the S&P 500 can be listed on either the Nasdaq or New York Stock Exchange.
The S&P 500 is considered the best representation of the US stock market and a bellwether for the US economy.
Facebook shares jumped 4% after hours on the news.
After a botched public offering in May 2012, Facebook shares slid to less than half of their initial $38 (£23; 28 euro) price, before recovering during the summer of 2013.
The company has been pleasing investors recently, notching better than expected earnings and strong mobile advertising sales, a crucial metric watched by analysts.
It is now worth a little over $122bn (£74bn).
Other firms added to the S&P 500 are Alliance Data Systems and flooring company Mohawk Industries.
They replace retailer Abercrombie & Fitch and JDS Uniphase, a maker of optical technology.

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