Why Shares of SelectQuote Rose Today

Shares of the insurance platform SelectQuote (NYSE: SLQT) rose more than 11% today after it was announced that the company would join the S&P SmallCap 600 Index.

The S&P SmallCap 600 covers U.S. small-cap stocks with market capitalizations ranging from $700 million to $3.2 billion at the time the company is added to the index. SelectQuote currently has a market cap of roughly $3.5 billion, although that's after its recent bump today.

Stocks tend to appreciate when they are added to an index because funds that track the index must now buy the stock. Also, being added to an index results in greater visibility for the stock.

Source Fool.com