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It is one of the most commonly followed equity indices and includes approximately 80% of the total market capitalization of U.S. public companies, with an aggregate market cap of more than $43 trillion as of January 2024. [2] [6] The S&P 500 index is a free-float weighted/capitalization-weighted index.
A common version of capitalization weighting is the free-float weighting. With this method a float factor is assigned to each stock to account for the proportion of outstanding shares that are held by the general public, as opposed to "closely held" shares owned by the government, royalty, or company insiders (see float). For example, if for ...
The NIFTY 50 index is a free float market capitalisation-weighted index. Stocks are added to the index based on the following criteria: [1] Must have traded at an average impact cost of 0.50% or less during the last six months for 90% of the observations, for the basket size of Rs. 100 Million. The company should have a listing history of 6 months.
It contains top 500 listed companies on the NSE. The NIFTY 500 index represents about 96.1% of free float market capitalization and about 96.5% of the total turnover on the National Stock Exchange . [2] NIFTY 500 companies are disaggregated into 72 industry indices. [3] Industry weights in the index reflect industry weights in the market.
This number is sometimes seen as a better way of calculating market capitalization, because it provides a more accurate reflection (than entire market capitalization) of what public investors consider the company to be worth. [1] In this context, the float may refer to all the shares outstanding that can be publicly traded. [2]
The EURO STOXX 50 Index represents some of the largest companies in the Eurozone in terms of free-float market capitalization. The index captures about 60% of the free-float market capitalization of the EURO STOXX Total Market Index (TMI), which in turn covers about 95% of the free-float market capitalization of the represented countries.
The mean free float market capitalization of the S&P 100 is over 3 times that of the S&P 500 ($135 bn vs $40 bn as of January 2017); as such, it is larger than a large-cap index. The "sigma" of companies within the S&P 100 is typically less than that of the S&P 500 and thus the corresponding volatility of the S&P 100 is lower.
The index is calculated based on a free float capitalisation method, a variation of the market capitalisation method. Instead of using a company's outstanding shares it uses its float, or shares that are readily available for trading. Free Floating capital implies total capitalization less Directors shareholding. [7]