Wiki@IndraStra

Free-float market capitalization-weighted index: Difference between revisions

← Older edit

WikiSysopIG (talk | contribs)

3 user groups
1,008 edits
VisualWikitext
 
(One intermediate revision by the same user not shown)
Line 11: Line 11:
Free-float market capitalization is calculated as:
Free-float market capitalization is calculated as:


<math> \text{Free-float Market Capitalization} = \text{Share Price} \times \text{Free-float Shares Outstanding} </math>
<math>
\text{Free-float Market Capitalization} =
\text{Share Price} \times \text{Free-float Shares Outstanding}
</math>


The weighting assigned to each constituent is determined by:
The weighting assigned to each constituent is determined by:


<nowiki><math></nowiki>
<math>
 
\text{Company Weight} =
\mathrm{Company\ Weight} =
\frac{\text{Company Free-float Market Capitalization}}
 
{\text{Total Free-float Market Capitalization of the Index}}
\frac{
</math>
 
\mathrm{Company\ Free\!-\!float\ Market\ Capitalization}
 
}{
 
\mathrm{Total\ Free\!-\!float\ Market\ Capitalization\ of\ the\ Index}
 
}
 
<nowiki></math></nowiki>


As a result, companies with larger investable market capitalizations have a greater influence on the movement of the index.
As a result, companies with larger investable market capitalizations have a greater influence on the movement of the index.
Retrieved from "https://wiki.indrastra.com/index.php/Free-float_market_capitalization-weighted_index"