GM and Hilton Are Switching From NYSE to Nasdaq: What It Means

what happened

General Motors will begin trading on Nasdaq on November 17, while Hilton Worldwide debuted on the exchange on Thursday, according to Barron's. The publication notes that Lumen Technologies, Nextdoor and D-Wave Quantum also left the NYSE this year. The companies cite a wish to be listed alongside more innovative firms.

Analysts say the move changes little for shareholders, since most companies keep their tickers. The main effect concerns indexes. JonesTrading strategist Michael O'Rourke said that index inclusion brings in passive demand, and the NYSE conceded that the chance to join the Nasdaq 100 is one reason some large companies switch.

The flow runs both ways. AstraZeneca, Kraft Heinz, Skydance and Trinity Capital moved from Nasdaq to the NYSE, and the NYSE said about half a trillion dollars of market capitalization has shifted to it this year.

why it matters

For markets, the key point is not the change of exchange but the prospect of index inclusion. Passive funds tracking the Nasdaq 100, S&P 500 and other indexes buy shares regardless of valuation, so this inflow can affect how the stocks trade. Competition between exchanges for large listings is also becoming a visible factor.

market impact

Акции GM и Hilton: возможный приток пассивного спроса при включении в индексы Nasdaq

• ▲GM shares pressure up — possible Nasdaq 100 inclusion would attract passive buyers
• ▲Hilton shares pressure up — a Nasdaq listing may open access to funds tracking the index

tags

instruments