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The PSEi isn't just a random collection of companies; it's a carefully curated list. The selection criteria are pretty strict, ensuring that only the most significant and liquid stocks make the cut. This means that the companies included in the index are not only large in terms of market capitalization but also have a high volume of shares being traded regularly. This liquidity is crucial because it allows investors to buy and sell shares easily without significantly impacting the stock price. The index is reviewed periodically, usually twice a year, to make sure it accurately reflects the current market conditions. Companies can be added or removed based on their performance and trading activity, keeping the index dynamic and relevant. So, whether you're a seasoned investor or just starting, understanding the PSEi is key to navigating the Philippine stock market landscape.