Why Shares of The Bancorp Are Trading Higher Today
Shares of The Bancorp (NASDAQ: TBBK), a $7.7 billion asset bank in Delaware, traded more than 10% higher as of 11 a.m. EDT today, after it came to light that the bank would soon 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. The Bancorp, which will join the index Friday, currently has a market cap of $1.42 billion.
Stocks tend to appreciate when they are added to an index because funds that track that index must now buy the stock. Also, being added to an index results in greater visibility for the stock.
Source Fool.com
