) --


(MBI) - Get Report

shares tumbled Monday on above-average volume after the insurer's stock was deleted from the

S&P 500



will be removed from the S&P 500 in favor of

Mead Johnson Nutrition


, Standard & Poor's said late last week. The changes will become effective after the close of trading on Dec. 18.

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Typically, stocks removed from the S&P 500 tend to drop in price as mutual funds that track the index must dump shares and buy those stocks being added. For instance,


(V) - Get Report

and Mead Johnson rose Monday on word of their inclusion in the index.

Shares of MBIA were falling by 29 cents, or 7.9%, to $3.38. Earlier in the session, the stock touched an intraday low of $3.35. More than 9.6 million shares changed hands by 3:30 p.m. EST Monday, compared to the stock's three-month average daily volume of 8.9 million, according to Yahoo! Finance.

MBIA has a 156.3 million-share float with a short interest float of 25.4% as of Nov. 30, according to Yahoo! Finance. Insiders hold 27% of the company's shares, with another 65% owned by institutions.

-- Written by Robert Holmes in Boston


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