Other posters have made good points.
The largest US market capitalization weighted index funds are also free float adjusted. This means that they also weighted by the percentage of shares that are apparently freely trading.
So, if closely held shares aren't being traded, like those that a controlling founder holds, these index funds will reduce their holdings accordingly.
If new information comes to light about the amount of closely held shares, index providers may adjust the weighting accordingly.
The largest US market capitalization weighted index funds are also free float adjusted. This means that they also weighted by the percentage of shares that are apparently freely trading.
So, if closely held shares aren't being traded, like those that a controlling founder holds, these index funds will reduce their holdings accordingly.
If new information comes to light about the amount of closely held shares, index providers may adjust the weighting accordingly.
Statistics: Posted by Lyrrad — Fri Oct 25, 2024 1:39 am — Replies 6 — Views 390