RE: RE: RE: RE: S&P/TSX-V Index Let me clarify the difference between Select and composite index.
The Select is a subset of the composite index.
Composite is around 500 companies
Select around 135 companies
Mart was dropped out of the select for a reason of liquidity not for the 10% cap. (Share transacted as a % of O/S float)
As per my previous post the rule is 50% and Mart did 30%. S&P has a buffer zone of 40% for present constituents but Mart went below that with less than 30%
To get back in the Select index Mart will have to trade 170M shares in the trailing 12 months.
I discussed the above with one of the 4 Board member of the index.
Here are the crietria for the select index according to S&P
Index Eligibility
The universe from which index candidates are drawn is the S&P/TSX Venture Composite Index.
For more information on the S&P/TSX Venture Composite Index, refer to www.standardandpoors.indices.com
The universe is then narrowed down to an investable set of stocks based on the following criteria:
Market Capitalization. Stocks must have a five-day average minimum float-adjusted market capitalization of CAD$ 50 million as of the rebalancing reference date.
S&P believes turnover in index membership should be avoided whenever possible. The S&P/TSX Venture Select Index maintains a 40% market capitalization buffer rule. At each rebalancing, index constituents whose five-day average float-adjusted market capitalization has fallen below CAD $50 million but remains above CAD $30 million stays in the index.
Public Float. Stocks must have public shares outstanding of 50% or greater.
For details regarding Investable Weight Factors (IWF) and Float Adjustment please refer to S&P’s Float Adjustment Methodology available at www.standardandpoors.com.
Liquidity. Index constituents should have adequate liquidity. The float turnover, as measured by comparing the trailing 12-month cumulative volume relative to the current float-adjusted shares, must be at least 0.5 as of the rebalancing reference date. The S&P/TSX Venture Select index maintains a 0.4 float turnover buffer rule for current constituents. In addition, an index security cannot have had more than 10 non-trading days in the prior 12 calendar months, as determined on a quarterly basis. A non-trading day is defined as any day where a security does not trade a minimum of one board lot on a day when the TSX Venture Exchange is open for trading.
Stocks passing the above criteria form the Index.
The reference date for the eligibility screens above are the last trading day of March, June, September and December of each year.