Home / Business and Economy / Reddit Joins S&P 500 Amid AvalonBay Merger
Reddit Joins S&P 500 Amid AvalonBay Merger
13 Aug
Summary
- Reddit will replace AvalonBay Communities in the S&P 500 index.
- AvalonBay is merging with Equity Residential to form Vivmark.
- Reddit stock saw an 11.03% increase in after-hours trading.
Reddit's social media platform is scheduled to be added to the S&P 500 index. This inclusion will take place before trading begins on Tuesday, August 18. Reddit will take the place of AvalonBay Communities Inc. (NYSE:AVB) within the benchmark index.
The vacant spot in the S&P 500 arises because AvalonBay is merging with another S&P 500 constituent, Equity Residential (NYSE:EQR). Shareholders from both apartment REITs have overwhelmingly approved this transaction, paving the way for its closure as early as Monday, August 17.
Under the terms of the merger, each AvalonBay share will be converted into 2.793 shares of Equity Residential. The newly formed entity will shed its legacy names and will be known as Vivmark Residential, trading on the NYSE under the ticker VMRK starting August 18. This combined company will maintain its position in the S&P 500.
Reddit stock (RDDT) saw a notable increase of 11.03% during after-hours trading on Thursday, reaching $175.56. This surge reflects market anticipation of Reddit's upcoming inclusion in the S&P 500.
