Hi leasx, I've been thinking and wondering: 1) Does that mean if...

Hi leasx, I've been thinking and wondering:

1) Does that mean if Nearmap gets included into the ASX200 then traders can borrow & short the stock more frequently? And once in the ASX200, this should in turn also encourage more institutions in trading the stock more frequently, right?

2) I was investigating as to how a company can be included into the ASX200 and came across the following definition:

https://www.wise-owl.com/investment-education/asx-200-explained-what-is-the-asx-200

-------------------
How does a company qualify for the ASX200?

To be included in the ASX200 a stock must satisfy three conditions:

• The stock must be listed on the Australian Securities Exchange as an ordinary or preferred stock.
• The stock must satisfy liquidity requirements. Liquidity basically means how often the stock is traded and at what volume, indicating how easily an investor can buy or sell the stock. For the ASX200, the stock must have a certain level of liquidity, however the liquidity cannot be dominated by a small group of investors.
• The stock’s float-adjusted market capitalisation must also satisfy the requirements of the index. In the ASX200 that generally means that the company’s float adjusted market capitalisation must be amongst the 200 biggest on the ASX. The market capitalisation cannot include large strategic holdings or issuing of new shares.

Note that these three conditions are required for inclusion into the ASX200, however if an existing ASX200 company falls outside of the conditions temporarily, it does not mean that it is immediately excluded from the index. The index is rebalanced quarterly.

-------------------

While the second criteria did not mention any specific details; with the third criteria I believe Nearmap is approaching the required Market Cap level.

According to the latest ASX200 company rankings:
https://www.marketindex.com.au/asx200

The last 2 places are currently held by Myer ($398m) & Retail Food Group ($387m).

Nearmap has 389,969,848 shares outstanding and with a closing price of $0.945 this translates to a market cap of ($369m). Now, if NEA goes to $1 and can stay above that level for one quarter then it might just scrape into the last place of the ASX200 and be included, correct?

3) In regards to swaying the stock price, surely if more and more stocks are being issued by the company then the overall volume will increase and with much more unique investors trading the stock this will somewhat limit the price swings, correct?

PS: I still cannot believe if NEA goes to just $1.05, it will have a Market Cap bigger than Myer.
Wow !