Standard & Poor's Announces Index Changes

Standard & Poor's has announced that it will replace Knowledgeware Inc. with Foundation Health Corp. in the S&P MidCap 400 Index following the close of trading on November 15, 1994. Knowledgeware Inc. is being acquired by Sterling Software, a component of the S&P SmallCap 600 Index. The change reflects the significant development in the company's ownership structure and marks a notable transition in the market.

Key Takeaways:

• Standard & Poor's will replace Knowledgeware Inc. with Foundation Health Corp. in the S&P MidCap 400 Index on November 15, 1994.
• Knowledgeware Inc. is being acquired by Sterling Software, a component of the S&P SmallCap 600 Index.
• Foundation Health Corp. is a managed health care services company headquartered in Rancho Cordova, California.
• The S&P Equity Services Group calculates and maintains the S&P 500, S&P MidCap 400, and S&P SmallCap 600 stock price indexes, which are widely considered key barometers of stock market activity and performance benchmarks for professional money managers.
• The company additions and deletions from the S&P equity indexes do not reflect the investment merits of the company.
• Foundation Health Corp. will be added to the S&P MidCap 400 Health Care (Services) industry group.

Statistics:

• $260 billion is currently indexed to the S&P 500.
• The S&P 500, S&P MidCap 400, and S&P SmallCap 600 are widely considered key barometers of stock market activity.
• The S&P Equity Services Group provides financial, economic, and investment information to the global financial community and commodity trading markets.

Sources:

• Business Wire, Nov. 8, 1994
• Standard & Poor's press release.