Ann: S&P DJI Announces March 2023 Quarterly Rebalance, page-8

Good question, I am not sure how the process starts, however from my understanding a committee decides whether accepted or rejected and does have to meet criteria of some sort.

My thinking is more along the lines of being picked up more readily by institutions / fund managers being on the index. Being that markets generally go up my belief whether be correct or wrong is they use they add / remove stocks to indexes to manipulate to the upside thus the committee would be bias in their choices of stocks. No idea if this be true lols but has always been part of my psyche