Failed companies are dropped from stock market indices, so I wonder if investing... | Hacker News

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		pcrh on Oct 11, 2020 \| parent \| context \| favorite \| on: Reddit's Stock Threads Become a Must-Read on Wall ... Failed companies are dropped from stock market indices, so I wonder if investing in indices is in effect a method of biasing the selection in favor of "winners" over the general performance of the economy....?

lcrmorin on Oct 11, 2020 [–]

It is, but mostly due to their selection process, basically removing poorly performing companies and adding sane one that are about to grow.

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