The Index Game

When S&P added Yahoo to its 500 list, the stock soared. Want to guess what will be next?

More powerful than Microsoft! Able to leap Time Warner in a single bound! Why, it's Yahoo! In one breathtaking trading session, Yahoo went from being a glitzy dotcom to being one of the largest corporations in the world, surpassing hundreds in market value. And what had Yahoo done to earn the additional $40 billion in market cap? Zip-o. Amazingly, the updraft was a bizarre offshoot of the company's admission, after the close last Tuesday, to the elite Standard & Poor's 500.

As I watched its astounding ascent from $212, when the S&P announced its newest pick, to $348 at the bell,...

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