Get more! Sign up for PLANSPONSOR newsletters.
Investing December 12, 2001
BONY Moves ADR Index to Free Float Shares
December 12, 2001 (PLANSPONSOR.com) - The Bank of
New York ADR Index will convert to free-float adjusted shares
from full-market capitalization, effective December 24, the
bank announced Wednesday.
Reported by Fred Schneyer
Free float market capitalization reflects the number of shares actually available to the investment community. The bank will utilize Dow Jones Indexes’ methodology for free float.
Share adjustments are made to account for shares which make up 5% or more of the share capital of a company and which are unlikely to become publicly available.
This includes shares owned by a government, privately held shares, restricted shares, and non-U.S. shares which are unavailable because of home country limitations on foreign ownership.
For foreign ownership restrictions of 5% or more, the
lesser of the number of free-float shares or shares
available for foreign investment are used.
Also effective December 24, Greece will move from an
emerging markets index to a developed markets index, the
bank said. Currently, four companies comprise The Bank of
New York Greece ADR Index.
The Bank of New York ADR Index tracks all exchange-listed depositary receipts on a continuous basis.
The index is capitalization-weighted with a total value of more than $4 trillion. There are over 500 companies spread out over three regional indices, three market indices, three sector indices, 24 country indices and 18 country indicators.