Index funds do not BUY SHARES WHEN THE VALUE OF A SECURITY IN THAT INDEX DECLINES
When it is time for rebalancing, since the value of the company has declined relative to the rest of the index they would be forced to decrease the position as the company makes up less of the applicable index.
Not sure how people here don't understand that basic of passive index strategies.
Therefore if Blackrock had indeed bought (which I concede was incorrect based on the data I had), it would NOT HAVE BEEN index funds it would have been active management.
The point is moot because they did not purchase but the fact is the logic above is EXACTLY HOW INDEX FUNDS REBALANCE / WORK
Therefore, someone saying that an asset manager increasing its position when a stock has decreased its value by 70% is due to index fund buying, does not comprehend how indexing works
Sorry but those are facts!
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