https://en.wikipedia.org/wiki/Russell_Indexes R
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Posted On: 05/16/2019 3:50:24 AM
https://en.wikipedia.org/wiki/Russell_Indexes
Russell forms its indexes by listing all companies in descending order by market capitalization adjusted for float, which is the actual number of shares available for trading. In the United States, the top 3,000 stocks (those of the 3,000 largest companies) make up the broad-market Russell 3000 Index. The top 1,000 of those companies make up the large-cap Russell 1000 Index, and the bottom 2,000 (the smallest companies) make up the small-cap Russell 2000 Index.
The Russell 3000E Index represents approximately 99 percent of the U.S. equity market. Russell excludes stocks trading below $1, stocks that trade on the pink sheets and OTC Bulletin Board..., .
Annual reconstitution
Russell rebalances its indexes once each year in June, called "reconstitution". The reconstitution consists of updating the global list of investable stocks and assigning them to the appropriate indices. The Russell indexes do not immediately replace a company that merges with another firm or has its stock delisted[interesting -will have to dd further]
https://www.investopedia.com/terms/r/russell_3000.asp
"Stocks in the Russell 3000 index is reconstituted once a year on the last Friday in June. At this time, all eligible securities are ranked by their current market capitalization. This ensures growing or shrinking companies are accurately represented in the overall index. At any time, if a security is no longer eligible for membership then a replacement is named at the next scheduled reconstitution. ."
zn would be removed from the russell index on june 28 - but fund managers have had 9 months to unload zn stock if they wished and while some was unloaded some also added or started a new position-its a spec stock and that will not change- fund managers like a small % of portfolio in spec stocks bc the return on such can be much larger than blue chips
what is the market cap requirement to be in the 3000??? see below
if 98% of stocks are in the 3000 by virtue of market cap,maybe zn would still have a sufficient market cap
zn shares have grown by ca 14 million in the last year- since market cap is shares times pps,the increased no of shares reduces the pps requirement to obtain a certain market cap
Russell 1000® Index
? Representing the US large cap market segment, the total market cap of the
Russell 1000 Index increased 13% from $24.9 trillion as of last year’s reconstitution
to $28.2 trillion.
? With banding applied, the smallest company by market capitalization in the index is
Mercury General, with a total market capitalization of $2.5 billion
https://www.ftserussell.com/research-insights...ion-ranges
Russell US Indexes — Historical
2018 smallest market cap was 159.2 million
zn at ca 72 M shares times current .47 is only 33.84m cap but this is the lowest pps since late dec
159.2 M divided by 72M shares is 2.21 pps
so zn would not have market cap for russell-
so if zn is to be dropped why have some institutions increased their zn shares -see above
note again market cap for nasdaq is much lower than for russell
there are 3 levels of nasdaq and possibly different evels of market cap required for each level depending on which matrix the co plans to qualify under
Russell forms its indexes by listing all companies in descending order by market capitalization adjusted for float, which is the actual number of shares available for trading. In the United States, the top 3,000 stocks (those of the 3,000 largest companies) make up the broad-market Russell 3000 Index. The top 1,000 of those companies make up the large-cap Russell 1000 Index, and the bottom 2,000 (the smallest companies) make up the small-cap Russell 2000 Index.
The Russell 3000E Index represents approximately 99 percent of the U.S. equity market. Russell excludes stocks trading below $1, stocks that trade on the pink sheets and OTC Bulletin Board..., .
Annual reconstitution
Russell rebalances its indexes once each year in June, called "reconstitution". The reconstitution consists of updating the global list of investable stocks and assigning them to the appropriate indices. The Russell indexes do not immediately replace a company that merges with another firm or has its stock delisted[interesting -will have to dd further]
https://www.investopedia.com/terms/r/russell_3000.asp
"Stocks in the Russell 3000 index is reconstituted once a year on the last Friday in June. At this time, all eligible securities are ranked by their current market capitalization. This ensures growing or shrinking companies are accurately represented in the overall index. At any time, if a security is no longer eligible for membership then a replacement is named at the next scheduled reconstitution. ."
zn would be removed from the russell index on june 28 - but fund managers have had 9 months to unload zn stock if they wished and while some was unloaded some also added or started a new position-its a spec stock and that will not change- fund managers like a small % of portfolio in spec stocks bc the return on such can be much larger than blue chips
what is the market cap requirement to be in the 3000??? see below
if 98% of stocks are in the 3000 by virtue of market cap,maybe zn would still have a sufficient market cap
zn shares have grown by ca 14 million in the last year- since market cap is shares times pps,the increased no of shares reduces the pps requirement to obtain a certain market cap
Russell 1000® Index
? Representing the US large cap market segment, the total market cap of the
Russell 1000 Index increased 13% from $24.9 trillion as of last year’s reconstitution
to $28.2 trillion.
? With banding applied, the smallest company by market capitalization in the index is
Mercury General, with a total market capitalization of $2.5 billion
https://www.ftserussell.com/research-insights...ion-ranges
Russell US Indexes — Historical
2018 smallest market cap was 159.2 million
zn at ca 72 M shares times current .47 is only 33.84m cap but this is the lowest pps since late dec
159.2 M divided by 72M shares is 2.21 pps
so zn would not have market cap for russell-
so if zn is to be dropped why have some institutions increased their zn shares -see above
note again market cap for nasdaq is much lower than for russell
there are 3 levels of nasdaq and possibly different evels of market cap required for each level depending on which matrix the co plans to qualify under
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