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17-658: MICEX consisted of about 550 participating organizations and members, which traded for their clients. In 2006 the volume of transactions on the MICEX reached 20.38 trillion rubles (US$ 754.9 billion), representing more than 90% of the total turnover of the leading stock exchanges in the Russian stock market. About 239 Russian companies were listed, with a market capitalization of US$ 950 billion as of December 2010. MICEX started with currency auctions in November 1989 as an initiative by

34-630: A stock index's value. The impact that individual stock's price change has on the index is proportional to the company's overall market value (the share price multiplied by the number of outstanding shares), in a capitalization-weighted index. In other types of indices, different ratios are used. For example, the NYSE Amex Composite Index (XAX) is composed of all of the securities traded on the exchange including stocks and American depositary receipts (ADRs). The weighting of each component shifts with changes to each securities' price and

51-475: Is enterprise value (EV), which gives effect to outstanding debt, preferred stock, and other factors. For insurance firms, a value called the embedded value (EV) has been used. It is also used in ranking the relative size of stock exchanges , being a measure of the sum of the market capitalizations of all companies listed on each stock exchange. The total capitalization of stock markets or economic regions may be compared with other economic indicators (e.g.

68-408: Is equal to the market price per common share multiplied by the number of common shares outstanding. Market capitalization is sometimes used to rank the size of companies. It measures only the equity component of a company's capital structure , and does not reflect management's decision as to how much debt (or leverage ) is used to finance the firm. A more comprehensive measure of a firm's size

85-478: Is sometimes heard. Large caps have a slow growth rate as compared to small caps. Different numbers are used by different indexes; there is no official definition of, or full consensus agreement about, the exact cutoff values. The cutoffs may be defined as percentiles rather than in nominal dollars . The definitions expressed in nominal dollars need to be adjusted over decades due to inflation , population change, and overall market valuation (for example, $ 1 billion

102-536: Is the number of common shares outstanding, and P is the market price per common share. For example, if a company has 4 million common shares outstanding and the closing price per share is $ 20, its market capitalization is then $ 80 million. If the closing price per share rises to $ 21, the market cap becomes $ 84 million. If it drops to $ 19 per share, the market cap falls to $ 76 million. This is in contrast to mercantile pricing where purchase price, average price and sale price may differ due to transaction costs. Not all of

119-606: Is weighted in this manner is said to be "float-adjusted" or "float-weighted", in addition to being cap-weighted. For example, the S&;P 500 index is both cap-weighted and float-adjusted. Historically, in the United States, capitalization-weighted indices tended to use full weighting, i.e., all outstanding shares were included, while float-weighted indexing has been the norm in other countries, perhaps because of large cross-holdings or government ownership. More recently, many of

136-464: The Buffett indicator ). The total market capitalization of all publicly traded companies in 2023 was approximately US$ 111 trillion. Total market capitalization of all publicly traded companies in the world from 1975 to 2020. Market cap is given by the formula MC = N × P {\textstyle {\text{MC}}=N\times P} , where MC is the market capitalization, N

153-655: The Foreign trade and investment bank of the USSR . Thus, for the first time the market ruble exchange rate to dollar was established. In January 1992 it became the main platform for carrying out currency transactions for banks and enterprises. Until July 1992 the rate in the Moscow Interbank Stock Exchange was used by the Central Bank for the official quotation of ruble to foreign currencies. In

170-544: The U.S. indices, such as the S&;P 500, have been changed to a float -adjusted weighting which makes their calculation more consistent with non-U.S. indices. An index may also be classified according to the method used to determine its price. In a price-weighted index such as the Dow Jones Industrial Average , the price of each component stock is the only consideration when determining the value of

187-447: The government, royalty, or company insiders (see float ). For example, if for some stock 15% of shares are closely held, and the other 85% are publicly held, the float factor will be 0.85, by which the company's market capitalization will be multiplied before weighting its value against the rest of the index. In other words, the number of shares used for calculation is the number of shares "floating", rather than outstanding. An index that

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204-476: The mid-1990s preparation for trading corporate securities and futures began. On 19 December 2011, MICEX merged with the Russian Trading System to form a single entity known as MICEX-RTS that was expected to become a leading stock exchange globally for trading across asset classes and to advance Russia's plans to turn Moscow into an international financial centre. The goals of the merger included

221-426: The number of shares outstanding. The index moves in line with changes in price of the component. Stock market indices are a type of economic index . A common version of capitalization weighting is the free-float weighting. With this method a float factor is assigned to each stock to account for the proportion of outstanding shares that are held by the general public, as opposed to "closely held" shares owned by

238-428: The optimisation of the Russian stock market, the reduction of the number of organisations with overlapping functions, the creation of a single platform for issuers, traders and investors, the reduction of transaction costs, and easier trading. Problems in merging the infrastructure resulted in computer errors in trades, something that had not happened on the merged exchanges for a decade: on the first day of trades, there

255-513: The outstanding shares trade on the open market. The number of shares trading on the open market is called the float. It is equal to or less than N because N includes shares that are restricted from trading. The free-float market cap uses just the floating number of shares in the calculation, generally resulting in a smaller number. Traditionally, companies were divided into large-cap, mid-cap, and small-cap . The terms mega-cap and micro-cap have since come into common use, and nano-cap

272-483: Was a large market cap in 1950, but it is not very large now), and market caps are likely to be different country to country. Capitalization-weighted index#Free-float weighting A capitalization-weighted (or cap-weighted ) index , also called a market-value-weighted index is a stock market index whose components are weighted according to the total market value of their outstanding shares . Every day an individual stock's price changes and thereby changes

289-482: Was a short period of computer glitches when the clearing system malfunctioned, which resulted in registering multiple unsanctioned deals, with some traders suffering losses. A new brand for the united exchange was unveiled in the first half of 2012. Market capitalization Market capitalization , sometimes referred to as market cap , is the total value of a publicly traded company 's outstanding common shares owned by stockholders. Market capitalization

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