Free-float market capitalization-weighted index: Difference between revisions
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<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} = \frac{\text{Company Free-float Market Capitalization}} {\text{Total Free-float Market Capitalization of the Index}} </math></nowiki> | ||
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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. | ||