Times Staff Writer
St. Petersburg investment firm Raymond James Financial was selected to become part of the S&P 500 index, the latest milestone for the financial company as it continues to grow. The move becomes effective March 20.
"We are honored to be included with this prestigious group of companies," said Raymond James CEO Paul Reilly. "This represents a significant milestone for Raymond James, and a major accomplishment for our chairman emeritus Tom James, who brought Raymond James public more than 30 years ago, as well as the many current and past advisors and associates who have built this company to its current place among our industry's leaders."
Raymond James is one of three companies joining the S&P 500 because their market values are now large enough for consideration and because three existing S&P 500 companies have watched their own market values fall below the recently revised mandatory minimum size. In addition to Raymond James, Advanced Micro Devices and Alexandria Real Estate Equities will become S&P 500 members. They replace Frontier Communications, Urban Outfitters and First Solar Inc.
S&P 500 companies must have a market value of at least $6.1 billion to remain part of the index. Raymond James' market value on Monday was just below $11 billion.
There is another silver lining to becoming part of the S&P 500. When a stock is added to the index, scores of index funds and other investments tied to the S&P 500 must buy the stock.
Other Florida companies that make up the S&P 500 include Next Era Energy and CSX, among others. No other Tampa Bay-based company is currently represented in the index.