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Shopify Inc. Class A Subordinate Voting Shares (SHOP)
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Brookfield Corporation Class A Limited Voting Shares (BN)
Q: Could you please help us understand the impact/benefit of the possible change as announced by S&P Dow Jones.
" This week, S&P Dow Jones said it will consider a significant change that would allow some companies to appear in multiple countries’ indexes, paving the way for companies such as Brookfield Asset Management Ltd. BAM-T , Shopify Inc. SHOP-T
, to be both Canadian and American.
S&P Dow Jones says it could allow companies “with significant ties to Canada” to stay in a Canadian index even if it normally would consider the company “domiciled” in another country. The company would need to be incorporated in Canada to be eligible.
Until now, S&P Dow Jones has said a company can have just one country of domicile – and that country’s stock indexes are where it needs to be. "
" This week, S&P Dow Jones said it will consider a significant change that would allow some companies to appear in multiple countries’ indexes, paving the way for companies such as Brookfield Asset Management Ltd. BAM-T , Shopify Inc. SHOP-T
, to be both Canadian and American.
S&P Dow Jones says it could allow companies “with significant ties to Canada” to stay in a Canadian index even if it normally would consider the company “domiciled” in another country. The company would need to be incorporated in Canada to be eligible.
Until now, S&P Dow Jones has said a company can have just one country of domicile – and that country’s stock indexes are where it needs to be. "
5i Research Answer:
It is an interesting development. It may favour Canada's largest companies if they have the possibility of being included in other indices. We will believe this when it actually happens, however. But it could raise the possibility of more index buying for our largest stocks.