The market capitalization of a given share is one of the criteria for entry into the index universe and for constituency in market cap indices (i.e., indices for which the composition of the index is set according to the market capitalization of its constituent shares, such as the TA-35, TA-90 and other indices).
Market capitalization is calculated as follows:
MV=Q*P
MV – Market Cap of a given share on the parameter update record date.
Q – Index Adjusted Number of Shares (IANS) on the parameter update record date.
P – Average closing price, that equals to the average of the closing prices of a given share on ten days prior to the fixed parameter update record date. However, if the record date is not a trading day, then the average closing price of nine days is taken into account.
If the ex-dividend was calculated (following cash dividend, stock dividends, etc.) during a period of 10 trading days ending on the fixed parameter update record, the average closing price of the share is calculated so that each one of the closing prices is calculated one day prior to the ex-date, and then multiplied by the ratio between the ex-date and the record price.
