The S&P 500 index is reshuffling its ranks to reflect a new mix of large American companies. As part of a complicated shuffle involving 10 different companies and three S&P indexes, electronics manufacturing veteran Jabil (NYSE: JBL) is rejoining the market-tracker index after a seven-year absence. With a market cap of $15.2 billion at the market close last Friday, Jabil will be approximately the 400th-largest component.

Here's what it means to Jabil and its various stakeholders as its stock rejoins the top-shelf S&P 500 index.

The inclusion of a stock in the S&P 500 often leads to a positive impact on its price. This is partly due to increased visibility and credibility. Some investors prefer stocks that are members of a respectable market index such as the S&P 500, and many fund managers are bound by index-specific requirements.

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Source Fool.com