I have a unusual set up with a website. Unfortunately I cannot serve the website source from the root domain i.e.
http://www.example.com
I've been forced to redirect to a subdirectory to display the website content when the root URL is requested e.g.
http://www.example.com
Has a 301 redirect to:
http://www.example.com/subdirectory/index.html
Would it have an adverse affect on SEO to have this at the root domain?
Update:
After reading the below posts and studying the recommended links I used a 302 redirect. I chose this option since it appears that the Google recommendation is to use a 302 if it is a redirect from the root domain. To counter measure any possible duplication issues I made use of the rel="canonical" tag on the destination of the redirect.