ARMONK, N.Y. (
shares tumbled Monday on above-average volume after the insurer's stock was deleted from the
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.
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,
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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