Indices · Index specialist topics · lesson 1 of 9 · 8 min read · David Alexander
How an index chooses what is in it
index methodology
The published document defining what an index contains and how. Eligibility, size and liquidity thresholds, free-float adjustment, capping rules and review dates are all in it, and every one of them is a decision by a committee or a formula rather than a fact about the market.
This lesson is part of the advanced modules.
Modules 6 to 8 are included with a paid account. The definitional summary above is the whole of this page until then.