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Added "stocks can change"
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hugolmn committed Apr 10, 2024
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Expand Up @@ -31,6 +31,13 @@ This change in name was accompanied by this list of impacts (values as of March
- Top 3 holdings had a weight of 53.24% in the new index against 22.52% in the previous (x2.4)
- Increased fees from 0.23%/year to 0.30%/year.

## Stocks can change

Multiple reasons exists for stocks to be altered, usually through:
- Mergers: when 2 companies agree to become one, shareholders of both entities usually receive stocks of the combined entity.
- Acquisitions: when one company acquires another one, shareholders in the acquired company usually get stocks of the acquiring entity, receive cash, or a mix of stocks and cash.
- Privatization: when an investor decides to buy the majority of its shares and removes the company from the stock exchange (inverse of an IPO).

## Dividends can change

Some investors focus on dividend-growing companies, the ones pushing the streak beyond 25 years join the club of the "Dividend Aristocrats".
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