Will it rise if it is adopted as a constituent stock of the Nasdaq?

It is often considered positive when the held positions are included in an index. In this case, I will introduce the reasons why inclusion or exclusion from the Nasdaq 100 Index can cause stock price movements.

The Nasdaq 100 Index conducts a regular reconstitution of constituent stocks on the second Friday of December each year.For stocks where inclusion or exclusion from the index is anticipated, certain price fluctuations may be observed. This is because expectations for the "Index Effect" suggest the possibility of price increase or decrease.Index Effectsuggesting the possibility of price increase or decrease due to expectations of the Index Effect.

The index effect refers to the phenomenon where the included components of a stock price index change, causing the adopted components to rise and the excluded components to decline.

Looking at the performance of past included/excluded stocks,The index effect is reflected in the stock price before actual replacement occurs.It can be observed that there is a tendency for stock prices to start reflecting expectations of index inclusion. Be aware that if expectations for index inclusion are too high, there is also a possibility that stock prices may fall.

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