Calculation
Let:
- M = Number of issues included in the index. Hence i ranges from 1 to M;
- Pi = Price of one share of issue i included in the index;
- Ni = Number of shares of issue i for the full capitalization version; or, the float of issue i for the float-adjusted version;
- = a fixed scaling factor.
The value of the index is then:
At present, one index point corresponds to a little more than US$1 billion of market capitalization.
The list of issues included in the index is updated monthly to add new listings resulting from corporate spin-offs and initial public offerings, and to remove issues which move to the pink sheets or that have ceased trading for at least 10 consecutive days.
Read more about this topic: Wilshire 5000
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