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Broadcom Corp.’s stock continued to move ahead...

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Bloomberg News

Broadcom Corp.’s stock continued to move ahead Tuesday after Standard & Poor’s Corp. said the No. 1 maker of semiconductors for cable modems and digital TV set-top boxes will be added to the S&P; 500 Index.

The Irvine company’s shares climbed 13%, or $19.30 to $166.80, in Nasdaq trading, with much of the gain coming in after-hours trading Monday after the announcement. Broadcom stock has almost tripled in the past year, though it has retreated from a record $253 on March 23.

In the benchmark index, Broadcom will replace GTE Corp., which is being bought by Bell Atlantic Corp. The date of inclusion has not been announced.

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Companies’ shares typically rise when they join the index because many mutual funds that try to mimic the S&P; 500’s performance buy the stock. Money managers often are judged by comparing their performance with that of the S&P; 500.

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