S&P Dow Jones Indices announced late Friday that it is deleting once-highflying parka maker Canada Goose Holdings Ltd. (GOOS-T) from the S&P/TSX Composite Index, the broadest measure of the Canadian market. The decision comes as a result of a quarterly review, with the changes taking effect at the open of markets on Sept. 23.

S&P said it will also delete Ballard Power Systems Inc. (BLDP-T), Africa Oil Corp. (AOI-T), forestry company Canfor Corp. (CFP-T) and coal-storage company Westshore Terminals Investment Corp. (WTE-T).

It will add Bird Construction Inc. (BDT-T) and Triple Flag Precious Metals Corp. (TFPM-T).

No changes are being made to the S&P/TSX 60, a selection of most of the largest companies in the composite.

The removal of Canada Goose from the index is a significant development for the company, which has seen its stock price decline in recent months. The decision is based on the company's float, which is the value of shares that aren't held by insiders and that therefore trade frequently and are easily available to the public.

S&P Dow Jones uses float to judge whether a company should be included in its indexes. The index provider does not release its proprietary float calculations, but only about half the company's market capitalization is part of its float, according to S&P Global Market Intelligence, a separate arm of the company.

To get into the composite, a company's float-adjusted market capitalization must be 0.04 per cent, or four-hundredths of a percentage point, of the total value of the index. To stay in the composite, a company's float must not drop below 0.025 per cent, or 2.5 hundredths of a percentage point, of the total value of the index.

Why Is Canada Goose Being Dropped?

The decision to drop Canada Goose from the index is largely due to the company's declining float. The company's float has been shrinking in recent months as more and more shares are held by insiders. This has made it increasingly difficult for the company to meet the index's float requirements.

The majority of trading in the company's shares now takes place on the NYSE. This means that the company's float in Canada is relatively small. This has likely made it more difficult for the company to meet the index's float requirements.

What Does This Mean for Canada Goose?

The decision to drop Canada Goose from the index is likely to have a negative impact on the company's stock price. The removal of the company from the index will mean that index funds and other passive investors will no longer be required to hold shares in the company. This is likely to lead to a decrease in demand for the company's shares, which could put downward pressure on its stock price.

What About the Other Companies?

The changes to the S&P/TSX Composite Index are not limited to Canada Goose. S&P Dow Jones Indices is also deleting Ballard Power Systems Inc. (BLDP-T), Africa Oil Corp. (AOI-T), forestry company Canfor Corp. (CFP-T) and coal-storage company Westshore Terminals Investment Corp. (WTE-T). The index is adding Bird Construction Inc. (BDT-T) and Triple Flag Precious Metals Corp. (TFPM-T).

The decision to drop these companies from the index is also based on the company's float. The decision to add the other two companies is likely due to their increasing float and market capitalization.

Impact on the Canadian Market

The changes to the S&P/TSX Composite Index are likely to have a significant impact on the Canadian market. The removal of these companies from the index will mean that index funds and other passive investors will no longer be required to hold shares in these companies. This is likely to lead to a decrease in demand for these companies' shares, which could put downward pressure on their stock prices.

The addition of the new companies to the index is likely to have a positive impact on these companies' stock prices. The addition of these companies to the index will mean that index funds and other passive investors will be required to hold shares in these companies. This is likely to lead to an increase in demand for these companies' shares, which could put upward pressure on their stock prices.

A Growing Trend?

This move by S&P Dow Jones Indices reflects a growing trend in the Canadian market. The number of index funds and other passive investors is growing rapidly. This is leading to a situation where the weight of index funds is having an increasing impact on the stock market. As this trend continues, we are likely to see more changes to the S&P/TSX Composite Index in the coming months and years.

The removal of Canada Goose, Ballard Power Systems, Africa Oil, Canfor, and Westshore Terminals from the S&P/TSX Composite Index is a reminder that the Canadian stock market is constantly evolving. Index funds and other passive investors are having an increasing impact on the market, and this is likely to lead to more changes to the S&P/TSX Composite Index in the coming months and years.

The Future of Canadian Stock Markets

The Canadian stock market is facing a number of challenges in the coming years. The growth of index funds and other passive investors is one of the biggest challenges. This is leading to a situation where the weight of index funds is having an increasing impact on the stock market. This is making it more difficult for smaller companies to get listed on the S&P/TSX Composite Index. It is also making it more difficult for companies that are not meeting the index's requirements to stay listed.

The Canadian stock market is also facing challenges from the global economy. The global economy is facing a number of challenges, including the war in Ukraine, rising inflation, and supply chain disruptions. These challenges are making it more difficult for Canadian companies to grow and prosper.

Despite these challenges, the Canadian stock market remains a strong and vibrant market. The Canadian economy is diversified and resilient, and the Canadian stock market is home to a wide range of companies that are well-positioned to benefit from global growth.

It remains to be seen what the future holds for the Canadian stock market. But one thing is for sure: the market is constantly evolving, and investors need to be aware of the latest trends to make informed investment decisions.